UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended ~~March~~September 2624, 2025

Commission File Number 1-10275

BRINKER INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

75-1914582

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

3000 Olympus Blvd

Dallas

75019

(Address of principal executive offices)

(Zip Code)

(972)

980-9917

(Registrant’s telephone number, including area code)

Title of each class

Trading Symbol(s)

Name of exchange on which registered

Common Stock, $0.10 par value

EAT

NYSE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of ~~April~~October 2423, 2025: 44,~~451~~431,~~153~~215 shares

BRINKER INTERNATIONAL, INC.

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

			Page
PART I. FINANCIAL INFORMATION			3
Item 1. Financial Statements			3
Consolidated Statements of Comprehensive Income (Unaudited) - Thirteen and Thirty-Nine Week Periods Ended March 26, 2025 and March 27, 2024			3
Consolidated Statements of Comprehensive Income (Unaudited) - Thirteen Week Period Ended September 24, 2025 and September 25, 2024			3
Consolidated Balance Sheets - March 26, 2025 (Unaudited) and June 26, 2024			4
Consolidated Balance Sheets - September 24, 2025 (Unaudited) and June 25, 2025			4
Consolidated Statements of Cash Flows (Unaudited) - Thirty-Nine Week Periods Ended March 26, 2025 and March 27, 2024			5
Consolidated Statements of Cash Flows (Unaudited) - Thirteen Week Period Ended September 24, 2025 and September 25, 2024			5
Consolidated Statements of Shareholders’ Equity (Deficit) (Unaudited) - Thirty-Nine Week Periods Ended March 26, 2025 and March 27, 2024			6
Consolidated Statements of Shareholders’ Equity (Unaudited) - Thirteen Week Period Ended September 24, 2025 and September 25, 2024			6
Notes to Consolidated Financial Statements (Unaudited)			87
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			1917
Item 3. Quantitative and Qualitative Disclosures About Market Risk			3526
Item 4. Controls and Procedures			3526
PART II. OTHER INFORMATION			3728
Item 1. Legal Proceedings			3728
Item 1A. Risk Factors			3728
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			3728
Item 5. Other Information			3728
Item 6. Exhibits			3829
SIGNATURES			3930

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BRINKER INTERNATIONAL, INC.

Consolidated Statements of Comprehensive Income (Unaudited)

(In millions, except per share amounts)

Thirteen Week Periods Ended

~~Thirty-Nine Week Periods Ended~~

March 26,2025

March 27,2024

March 26,2025

March 27,2024

September 24,2025

September 25,2024

Revenues

Company sales

1,~~413~~335.04

1,~~108~~127.93

~~3,886.4~~

~~3,174.6~~

Franchise revenues

1213.18

11.47

~~35.9~~

~~32.3~~

Total revenues

1,~~425~~349.12

1,~~120~~139.30

~~3,922.3~~

~~3,206.9~~

Operating costs and expenses

Food and beverage costs

~~353~~344.16

~~277~~284.83

~~981.3~~

~~809.7~~

Restaurant labor

~~452~~431.20

~~370~~377.64

~~1,250.6~~

~~1,074.8~~

Restaurant expenses

~~340~~344.90

~~303~~313.49

~~979.2~~

~~888.9~~

Depreciation and amortization

5453.76

4246.63

~~148.7~~

~~125.8~~

General and administrative

5857.32

4651.18

~~163.2~~

~~131.7~~

Other (gains) and charges

9.0.9

98.9

~~30.0~~

~~19.5~~

Total operating costs and expenses

1,~~268~~231.23

1,~~050~~082.46

~~3,553.0~~

~~3,050.4~~

Operating income

~~156~~117.9

6956.94

~~369.3~~

~~156.5~~

Interest expenses

1310.25

1614.23

~~42.2~~

~~49.9~~

Other income, net

(0.12)

(0.2)

~~(0.7)~~

~~(0.3)~~

Income before income taxes

~~143~~107.86

5342.93

~~327.8~~

~~106.9~~

Provision for income taxes

248.71

53.28

~~51.7~~

~~8.9~~

Net income

~~119~~99.15

4838.75

~~276.1~~

~~98.0~~

Basic net income per share

2.6823

10.1086

~~6.19~~

~~2.21~~

Diluted net income per share

2.5617

10.0884

~~5.96~~

~~2.17~~

Basic weighted average shares outstanding

44.47

44.39

~~44.6~~

~~44.4~~

Diluted weighted average shares outstanding

4645.48

45.29

~~46.4~~

~~45.2~~

Other comprehensive income (loss)

Foreign currency translation adjustment

(0.1)

(0.2)1

~~(0.3)~~

~~(0.2)~~

Comprehensive income

~~119~~99.24

4838.56

~~275.8~~

~~97.8~~

See accompanying Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

BRINKER INTERNATIONAL, INC.

Consolidated Balance Sheets

(In millions, except per share amounts)

	Unaudited
	March 26,2025		June 26,2024
	September 24,2025		June 25,2025
ASSETS
Current assets
Cash and cash equivalents	$	1733.56	$	6418.69
Accounts receivable, net	5761.56		6073.64
Inventories	3534.14		3435.52
Restaurant supplies	5554.25		5354.89
Prepaid expenses	2130.24		2024.6
Income taxes receivable	2.6		—
Total current assets	214.5		207.0
Total current assets	189.1		234.1
Property and equipment, at cost
Land	44.8		4144.69
Buildings and leasehold improvements	1,~~723~~772.19		1,~~670~~755.2
Furniture and equipment	~~826~~885.30		~~830~~845.63
Construction-in-progress	~~116~~53.67		4171.08
	2,710.8		2,583.4
	2,756.4		2,717.2
Less accumulated depreciation and amortization	(1,~~771~~789.67)		(1,~~703~~764.75)
Net property and equipment	~~939~~966.27		~~879~~952.7
Other assets
Operating lease assets	1,~~075~~166.74		1,~~095~~149.21
Goodwill	194.57		194.87
Deferred income taxes, net	~~101~~98.34		~~113~~101.94
Intangibles, net	1816.18		1917.94
Other	54.05		5556.53
Total other assets	1,~~443~~530.68		1,~~479~~518.39
Total assets	$	2,~~571~~712.90	$	2,~~593~~678.16
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	~~185~~160.63	$	~~160~~168.65
Gift card liability	5950.58		6457.82
Accrued payroll	~~148~~107.23		~~130~~156.82
Operating lease liabilities	117.97		114.16
Other accrued liabilities	~~150~~174.5		~~144~~172.76
Income taxes payable, net	5.94		76.35
Total current liabilities	~~667~~616.60		~~622~~675.36
Long-term debt and finance leases, less current installments	~~518~~525.38		~~786~~426.30
Long-term operating lease liabilities, less current portion	1,~~058~~154.70		1,~~084~~135.53
Other liabilities	6872.3		6070.68
Commitments and contingencies (Note 7)
Shareholders’ equity
Common stock (250.0 million authorized shares; $0.10 par value; 60.3 million shares issued and 44.4 million shares outstanding at March 26, 2025 and 60.3 million shares issued and 45.0 million shares outstanding at June 26, 2024)	6.0		6.0
Common stock (250.0 million authorized shares; $0.10 par value; 60.3 million shares issued and 44.4 million shares outstanding at September 24, 2025 and 60.3 million shares issued and 44.5 million shares outstanding at June 25, 2025)	6.0		6.0
Additional paid-in capital	~~711~~660.68		~~707~~714.85
Accumulated other comprehensive loss	(6.65)		(6.34)
Retained earnings (Accumulated deficit)	79.5		(196.6)
Retained earnings	286.0		186.5
Treasury stock, at cost (15.9 million shares at March 26, 2025, and 15.3 million shares at June 26, 2024)	(531.5)		(471.5)
Treasury stock, at cost (15.9 million shares at September 24, 2025, and 15.8 million shares at June 25, 2025)	(602.4)		(529.7)
Total shareholders’ equity	~~259~~343.09		39370.49
Total liabilities and shareholders’ equity	$	2,~~571~~712.90	$	2,~~593~~678.16

See accompanying Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

BRINKER INTERNATIONAL, INC.

Consolidated Statements of Cash Flows (Unaudited)

(In millions)

	Thirty-Nine Week Periods Ended
	Thirteen Week Periods Ended
	March 26,2025		March 27,2024
	September 24,2025		September 25,2024
Cash flows from operating activities
Net income	$	~~276~~99.15	$	9838.05
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization	~~148~~53.76		~~125~~46.83
Stock-based compensation	237.19		167.51
Deferred income taxes, net	122.69		~~(12~~1.9)8
Non-cash other (gains) and charges	110.68		104.10
Net loss on disposal of assets	82.62		3.2.9
Other	10.95		20.17
Changes in assets and liabilities:
Accounts receivable, net	213.27		~~11.~~6.0
Inventories	(10.1)8		13.52
Restaurant supplies	(21.0)		(0.42)
Prepaid expenses	0(5.18)		(98.04)
Income taxes	(41.42)		20.52
Operating lease assets, net of liabilities	(2.0.8)		(21.92)
Other assets	(0.3)9		~~(0.4)~~—
Accounts payable	83.85		26(1.71)
Gift card liability	(56.24)		(78.02)
Accrued payroll	17(49.70)		5(32.49)
Other accrued liabilities	(83.65)		72.82
Other liabilities	52.2		1.89
Net cash provided by operating activities	~~493~~120.08		~~280~~62.48
Cash flows from investing activities
Payments for property and equipment	(~~185~~58.46)		(~~140~~56.95)
Proceeds from note receivable	—		1.3
Proceeds from sale of assets	0.2		—
Proceeds from sale of assets	—		0.9
Insurance recoveries	0.5		—
Insurance recoveries	—		0.7
Net cash used in investing activities	(57.9)		(56.5)
Net cash used in investing activities	(185.4)		(138.0)
Cash flows from financing activities
Borrowings on revolving credit facility	~~670~~255.0		~~304~~90.0
Payments on revolving credit facility	(~~580~~165.0)		(~~414~~65.0)
Payments on long-term debt	(366.3)		(14.4)
Purchases of treasury stock	(134.5)		(74.8)
Purchases of treasury stock	(86.3)		(25.6)
Payments on long-term debt	(3.9)		(8.2)
Proceeds from issuance of treasury stock	8.0.2		83.94
Payments for debt issuance costs	~~(0.1)~~—		(0.71)
Payments of dividends	—		(0.2)
Net cash used in financing activities	(48.2)		(54.7)
Net cash used in financing activities	(354.7)		(142.0)
Net change in cash and cash equivalents	14.7		(48.4)
Net change in cash and cash equivalents	(47.1)		0.4
Cash and cash equivalents at beginning of period	18.9		64.6
Cash and cash equivalents at beginning of period	64.6		15.1
Cash and cash equivalents at end of period	$	33.6	$	16.2
Cash and cash equivalents at end of period	$	17.5	$	15.5
Supplemental disclosure of cash flow information:
Income taxes paid, net	$	436.43	$	191.27
Interest paid, net of amounts capitalized	5116.79		3816.73
Accrued capital expenditures	3023.41		108.5

See accompanying Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

BRINKER INTERNATIONAL, INC.

Consolidated Statements of Shareholders’ Equity (~~Deficit) (~~Unaudited)

(In millions)

	Thirty-Nine Week Period Ended March 26, 2025
	Thirteen Week Period Ended September 24, 2025
	Common Stock		AdditionalPaid-InCapital		Retained Earnings ~~(Accumulated Deficit)~~		TreasuryStock		AccumulatedOtherComprehensiveLoss		Total
Balances at June 26, 2024	$	6.0	$	707.8	$	(196.6)	$	(471.5)	$	(6.3)	$	39.4
Balances at June 25, 2025	$	6.0	$	714.5	$	186.5	$	(529.7)	$	(6.4)	$	370.9
Net income	—		—		3899.5		—		—		3899.5
Other comprehensive income	—		—		—		—		0.1		0.1
Other comprehensive loss	—		—		—		—		(0.1)		(0.1)
Stock-based compensation	—		7.19		—		—		—		7.19
Purchases of treasury stock	—		(432.84)		—		(70102.31)		—		(75134.15)
Issuances of treasury stock	—		(1229.2)		—		1429.94		—		20.72
Balances at September 25, 2024	$	6.0	$	697.9	$	(158.1)	$	(526.9)	$	(6.2)	$	12.7
Balances at September 24, 2025	$	6.0	$	660.8	$	286.0	$	(602.4)	$	(6.5)	$	343.9
Net income	—		—		118.5		—		—		118.5
Other comprehensive loss	—		—		—		—		(0.5)		(0.5)
Stock-based compensation	—		7.2		—		—		—		7.2
Purchases of treasury stock	—		(0.3)		—		(10.1)		—		(10.4)
Issuances of treasury stock	—		(0.3)		—		4.3		—		4.0
Balances at December 25, 2024	$	6.0	$	704.5	$	(39.6)	$	(532.7)	$	(6.7)	$	131.5
Net income	—		—		119.1		—		—		119.1
Other comprehensive income	—		—		—		—		0.1		0.1
Stock-based compensation	—		8.8		—		—		—		8.8
Purchases of treasury stock	—		(0.8)		—		(0.3)		—		(1.1)
Issuances of treasury stock	—		(0.9)		—		1.5		—		0.6
Balances at March 26, 2025	$	6.0	$	711.6	$	79.5	$	(531.5)	$	(6.6)	$	259.0


	Thirteen Week Period Ended September 25, 2024
	Common Stock		Additional Paid-In Capital		Accumulated Deficit		Treasury Stock		Accumulated Other Comprehensive Loss		Total
Balances at June 26, 2024	$	6.0	$	707.8	$	(196.6)	$	(471.5)	$	(6.3)	$	39.4

Net income	—		—		38.5		—		—		38.5
Other comprehensive income	—		—		—		—		0.1		0.1

Stock-based compensation	—		7.1		—		—		—		7.1
Purchases of treasury stock	—		(4.8)		—		(70.3)		—		(75.1)
Issuances of treasury stock	—		(12.2)		—		14.9		—		2.7

Balances at September 25, 2024	$	6.0	$	697.9	$	(158.1)	$	(526.9)	$	(6.2)	$	12.7

See accompanying Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

	Thirty-Nine Week Period Ended March 27, 2024
	Common Stock		AdditionalPaid-InCapital		Accumulated Deficit		TreasuryStock		AccumulatedOtherComprehensiveLoss		Total
Balances at June 28, 2023	$	6.0	$	690.0	$	(351.9)	$	(482.4)	$	(6.0)	$	(144.3)
Net income	—		—		7.2		—		—		7.2
Other comprehensive loss	—		—		—		—		(0.2)		(0.2)
Stock-based compensation	—		5.7		—		—		—		5.7
Purchases of treasury stock	—		(0.2)		—		(24.5)		—		(24.7)
Issuances of treasury stock	—		(11.7)		—		11.7		—		—
Balances at September 27, 2023	$	6.0	$	683.8	$	(344.7)	$	(495.2)	$	(6.2)	$	(156.3)
Net income	—		—		42.1		—		—		42.1
Other comprehensive income	—		—		—		—		0.2		0.2
Stock-based compensation	—		4.4		—		—		—		4.4
Purchases of treasury stock	—		(0.1)		—		(0.3)		—		(0.4)
Issuances of treasury stock	—		(1.1)		—		1.6		—		0.5
Balances at December 27, 2023	$	6.0	$	687.0	$	(302.6)	$	(493.9)	$	(6.0)	$	(109.5)
Net income	—		—		48.7		—		—		48.7
Other comprehensive loss	—		—		—		—		(0.2)		(0.2)
Stock-based compensation	—		6.4		—		—		—		6.4
Purchases of treasury stock	—		(0.2)		—		(0.3)		—		(0.5)
Issuances of treasury stock	—		0.2		—		8.2		—		8.4
Balances at March 27, 2024	$	6.0	$	693.4	$	(253.9)	$	(486.0)	$	(6.2)	$	(46.7)

See accompanying Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

Footnote Index

BRINKER INTERNATIONAL, INC.

Notes to Consolidated Financial Statements (Unaudited)

Footnote Index

Note #

Description

Page

Note 1

Basis of Presentation

Note 2

Revenue Recognition

109

Note 3

Fair Value Measurements

1110

Note 4

Accrued Liabilities

1211

Note 5

Leases

1211

Note 6

Debt

1312

Note 7

Commitments and Contingencies

1312

Note 8

Income Taxes

1413

Note 9

Shareholders’ Equity

1513

Note 10

Net Income Per Share

1514

Note 11

Other Gains and Charges

1615

Note 12

Segment Information

1715

Table of Contents

Footnote Index

1. BASIS OF PRESENTATION

References to “Brinker,” the “Company,” “we,” “us,” and “our” in this Form 10-Q refer to Brinker International, Inc. and its subsidiaries and any predecessor companies of Brinker International, Inc. Our Consolidated Financial Statements (Unaudited) as of ~~March~~September 2624, 2025 and June 2625, ~~2024~~2025, and for the thirteen ~~and thirty-nine~~ week periods ended ~~March~~September 2624, 2025 and ~~March~~September 2725, 2024, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).

We own, develop, operate and franchise the Chili’s® Grill & Bar (“Chili’s”) and Maggiano’s Little Italy® (“Maggiano’s”) restaurant brands. As of ~~March~~September 2624, 2025, we owned, operated or franchised 1,~~626~~630 restaurants, consisting of 1,~~163~~161 Company-owned restaurants and ~~463~~469 franchised restaurants, located in the United States, 28 other countries and two United States territories. Our restaurant brands, Chili’s and Maggiano’s, are both operating segments and reporting units.

Use of Estimates

The preparation of the Consolidated Financial Statements (Unaudited) is in conformity with generally accepted accounting principles in the United States (“GAAP”) and requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements (Unaudited), and the reported amounts of revenues and costs and expenses in the reporting periods. Actual results could differ from those estimates.

The information furnished herein reflects all adjustments (consisting only of normal recurring accruals and adjustments) which are, in our opinion, necessary to fairly state the interim operating results, financial position and cash flows for the respective periods. However, these operating results are not necessarily indicative of the results expected for the full fiscal year. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with GAAP, have been omitted pursuant to SEC rules and regulations. The Notes to Consolidated Financial Statements (Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements contained in our June 2625, ~~2024~~2025 Form 10-K. We believe the disclosures are sufficient for interim financial reporting purposes. All amounts in the Notes to Consolidated Financial Statements (Unaudited) are presented in millions unless otherwise specified.

Foreign Currency Translation

The Foreign currency translation adjustment represents the unrealized impact of translating the financial statements of our Canadian restaurants from their respective functional currency (Canadian dollars) to United States dollars and are reported as a component of Comprehensive income and recorded in Accumulated other comprehensive loss on our Consolidated Balance Sheets (Unaudited).

Recently Issued Accounting Standards

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, which require us to adopt the provisions in our fiscal 2025 Form 10-K. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Management does not expect this ASU to have a material impact on our disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregated information about a company’s effective tax rate reconciliation and requires disclosure of income taxes paid by jurisdiction. The amendments are effective for fiscal years beginning after December 15, 2024, which require us to adopt the provisions in our fiscal 2026 Form 10-K. The amendments should be applied prospectively; however, retrospective application is permitted. Management does not expect this ASU to have a material impact on our disclosures.

9In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires, for each relevant expense caption on the income statement, detailed disclosure amounts for purchases of inventory, employee compensation, depreciation, and intangible asset amortization. In addition, this ASU requires companies to include amounts already required by GAAP in the same disclosure, provide a qualitative description of remaining amounts not separately disaggregated, and disclose the amount of total selling expenses along with the companies’ definition of selling expenses. The amendment is effective for fiscal years beginning after December 15, 2026, which would require us to adopt the provisions in our fiscal 2028 Form 10-K. Early adoption is permitted.

Table of Contents

Footnote Index

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires, for each relevant expense caption on the income statement, detailed disclosure amounts for purchases of inventory, employee compensation, depreciation, and intangible asset amortization. In addition, this ASU requires companies to include amounts already required by GAAP in the same disclosure, provide a qualitative description of remaining amounts not separately disaggregated, and disclose the amount of total selling expenses along with the companies’ definition of selling expenses. The ~~amendment is effective for fiscal years beginning after December 15, 2026, which would require us to adopt the provisions in our fiscal 2028 Form 10-K. Early adoption is permitted. The~~ amendments should be applied prospectively; however, retrospective application is permitted. Management is currently evaluating this ASU to determine its impact on our disclosures.

2. REVENUE RECOGNITION

Deferred Franchise and Development Fees

Our deferred franchise and development fees consist of the unrecognized fees received from franchisees. Recognition of these fees in subsequent periods is based on satisfaction of the contractual performance obligations of the active contracts with franchisees. We also expect to earn subsequent period royalties and advertising fees related to our franchise contracts; however, due to the variability and uncertainty of these future revenues ~~based~~which depend upon a sales-based measure, these future revenues are not yet estimable as the performance obligations remain unsatisfied. Deferred franchise and development fees are classified within Other accrued liabilities for the current portion expected to be recognized within the next 12 months, and Other liabilities for the long-term portion in the Consolidated Balance Sheets (Unaudited).

The following table reflects the changes in deferred franchise and development fees between June 2625, ~~2024~~2025 and ~~March~~September 2624, 2025:

	Deferred Franchise and Development Fees
Balance as of June 26, 2024	$	9.7
Balance as of June 25, 2025	$	9.8
Additions	10.1
Amount recognized to Franchise revenues	(10.13)
Balance as of March 26, 2025	$	9.7
Balance as of September 24, 2025	$	9.6

The following table illustrates franchise and development fees expected to be recognized in the future related to performance obligations that were unsatisfied or partially unsatisfied as of ~~March~~September 2624, 2025:

Fiscal Year	Franchise and Development Fees Revenue Recognition
Remainder of 2025	$	0.2
Remainder of 2026	$	0.6
2026	0.8
2027	0.8
2028	0.7
2029	0.6
Thereafter	6.6
2030	0.5
	$	9.7
Thereafter	6.4
	$	9.6

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Deferred Gift Card Revenues

Total deferred revenues related to our gift cards include the full value of unredeemed gift card balances less recognized breakage and the unamortized portion of third party fees. The following table reflects the changes in the Gift card liability between June 2625, ~~2024~~2025 and ~~March~~September 2624, 2025:

	Gift Card Liability
Balance as of June 26, 2024	$	64.8
Balance as of June 25, 2025	$	57.2
Gift card sales	9420.95
Gift card redemptions recognized to Company sales	(9124.45)
Gift card breakage recognized to Company sales	(82.68)
Other	(0.2)4
Balance as of March 26, 2025	$	59.5
Balance as of September 24, 2025	$	50.8

3. FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability, in an orderly transaction between market participants at the measurement date under market conditions. Fair value measurements are categorized in three levels based on the types of significant inputs used, as follows:


Level 1			Quoted prices in active markets for identical assets or liabilities
Level 2			Observable inputs other than quoted prices in active markets for identical assets or liabilities
Level 3			Unobservable inputs that cannot be corroborated by observable market data

Financial Instruments

~~Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and long-term debt.~~ The fair values of cash and cash equivalents, accounts receivable and accounts payable approximate their carrying amounts because of the short maturity of these items.

The carrying amount of debt outstanding related to our revolving credit facility approximates fair value as the interest rate on this instrument approximates current market rates (Level 2). The fair values of our ~~notes~~note ~~are~~is based on quoted market prices and ~~are~~is considered a Level 2 fair value measurements.

The carrying amounts of the ~~notes~~note, which are net of unamortized debt issuance costs ~~and discounts~~, and fair values are as follows:

	March 26, 2025				June 26, 2024
	September 24, 2025				June 25, 2025
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
8.250% notes	$	345.8	$	371.1	$	345.2	$	367.8
8.25% notes	$	346.2	$	370.5	$	346.0	$	372.3
5.000% notes(1)	—		—		349.8		349.6

(1)On October 1, 2024, the 5.000% notes matured and were repaid in full using borrowings under our revolving credit facility.

Non-Financial Assets

We review the carrying amounts of non-financial assets, primarily long-lived property and equipment, finance lease assets, operating lease assets, reacquired franchise rights, goodwill and transferable liquor licenses annually or when events or circumstances indicate that the fair value may not substantially exceed the carrying amount. We determine the fair values of property and equipment, including finance lease assets, operating lease assets and reacquired franchise rights based on Level 3 fair value measurements. The fair values of transferable liquor licenses are based on prices in the open market for licenses in the same or similar jurisdictions and are categorized as Level 2. ~~The~~We ~~fair~~record ~~values~~an impairment charge for the excess of ~~other~~the ~~non-financial~~carrying ~~assets~~amount over the fair value. Any impairment charges are ~~determined~~included ~~based~~in onOther ~~appraisals,~~(gains) ~~sales~~and ~~prices~~charges in the Consolidated Statements of ~~comparable~~Comprehensive ~~assets~~Income or(Unaudited). ~~estimates~~During ofthe ~~discounted~~thirteen ~~cash~~week ~~flow~~periods ended September 24, 2025 and ~~are~~September ~~categorized~~25, as2024, ~~Level~~no 3indicators of impairment were identified.

WeIntangibles, ~~review~~net in the ~~carrying~~Consolidated ~~amounts~~Balance ofSheets ~~non-financial~~(Unaudited) ~~assets,~~includes ~~primarily~~both ~~long~~indefinite-lived ~~property~~intangible ~~and equipment, finance lease~~ assets, ~~operating~~such ~~lease~~as ~~assets, reacquired franchise rights, goodwill and~~ transferable liquor licenses ~~annually~~and ordefinite-lived ~~when~~intangible ~~events~~assets orsuch ~~circumstances~~as ~~indicate~~reacquired ~~that~~franchise ~~the fair value may not substantially exceed the carrying amount~~rights. WeAccumulated ~~record an~~

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~~impairment~~amortization ~~charge~~associated ~~for~~with the excess of the carrying amount over the fair value. Any impairment charges are included in Other (gains) and charges in the Consolidated Statements of Comprehensive Income (Unaudited). During the thirteen and thirtydefinite-~~nine~~lived ~~week~~intangible ~~periods~~assets ~~ended~~at ~~March 26~~September 24, 2025 and ~~March 27~~June 25, ~~2024~~2025, nowas ~~indicators~~$19.5 ofmillion ~~impairment~~and ~~were~~$19.0 ~~identified~~million, respectively.

Intangibles, net in the Consolidated Balance Sheets (Unaudited) includes both indefinite-lived intangible assets such as transferable liquor licenses and definite-lived intangible assets such as reacquired franchise rights. Accumulated amortization associated with definite-lived intangible assets at March 26, 2025 and June 26, 2024, was $18.3 million and $16.6 million, respectively.

4. ACCRUED LIABILITIES

Other accrued liabilities consist of the following:

	March 26,2025		June 26,2024
	September 24,2025		June 25,2025
Insurance	$	3443.34	$	3139.47
Sales tax	26.8		18.4
Property tax	31.0		25.2
Current installments of finance lease obligations	2423.01		1417.16
Property tax	20.5		24.6
Sales tax	22.3		22.8
Utilities and services	10.69		10.05
Interest	6.86		1813.15
Other	2737.52		2843.13
	$	~~150~~174.5	$	~~144~~172.76

5. LEASES

We typically lease our restaurant facilities through ground leases (where we lease land only, but construct the building and improvements) or retail leases (where we lease the land/retail space and building). In addition to our restaurant facilities, we also lease our corporate headquarters location and certain equipment.

The components of lease expenses included in the Consolidated Statements of Comprehensive Income (Unaudited) were as follows:

	Thirteen Week Periods Ended				~~Thirty-Nine Week Periods Ended~~
	March 26,2025		March 27,2024		March 26,2025		March 27,2024
	September 24,2025		September 25,2024
Operating lease cost	$	4547.85	$	45.76	$	~~137.2~~	$	~~136.9~~
Variable lease cost	18.01		16.31		~~51.6~~		~~47.4~~
Finance lease amortization	6.86		35.07		~~19.3~~		~~8.8~~
Finance lease interest	1.67		1.05		~~4.7~~		~~2.8~~
Short-term lease cost	0.2		0.1		~~0.5~~		~~0.2~~
Sublease income	(0.3)		(0.34)		~~(1.1)~~		~~(1.1)~~
Total lease costs, net	$	7273.18	$	6568.86	$	~~212.2~~	$	~~195.0~~

Supplemental cash flow information related to leases:

	Thirty-Nine Week Periods Ended
	Thirteen Week Periods Ended
	March 26,2025		March 27,2024
	September 24,2025		September 25,2024
Operating lease assets obtained in exchange for operating lease liabilities	$	6547.37	$	5318.10
Finance lease assets obtained in exchange for finance lease liabilities	1719.21		303.79

Finance lease assets are recorded in Property and equipment, at cost, and the net balance as of ~~March~~September 2624, 2025 and June 2625, ~~2024~~2025 was $9198.51 million and $9385.48 million, respectively.

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6. DEBT

Long-term debt consists of the following:

	March 26,2025		June 26,2024
	September 24,2025		June 25,2025
Revolving credit facility	$	90.0	$	—
8.250% notes	350.0		350.0
8.25% notes	350.0		350.0
5.000% notes(1)	—		350.0
Finance lease obligations	112.7		97.6
Finance lease obligations	106.5		105.4
Total long-term debt	552.7		447.6
Total long-term debt	546.5		805.4
Less: unamortized debt issuance costs	(3.8)		(4.0)
Less: unamortized debt issuance costs and discounts	(4.2)		(5.0)
Total long-term debt, less unamortized debt issuance costs	548.9		443.6
Total long-term debt, less unamortized debt issuance costs and discounts	542.3		800.4
Less: current installments of long-term debt(1)	(23.1)		(17.6)
Less: current installments of long-term debt and finance leases(2)	(24.0)		(14.1)
Total long-term debt, less current portion	$	525.8	$	426.0
Total long-term debt, less current portion	$	518.3	$	786.3

(1)OnCurrent ~~October~~installments 1,of ~~2024,~~long-term ~~the~~debt ~~5.000%~~consist ~~notes~~of ~~matured~~finance leases and ~~were~~are ~~repaid~~recorded within Other accrued liabilities in ~~full~~the ~~using~~Consolidated ~~borrowings~~Balance ~~under~~Sheets ~~our~~(Unaudited). ~~revolving~~Refer ~~credit~~to ~~facility~~Note 4 - Accrued Liabilities for further details.

(2)Current installments of long-term debt consist of finance leases and are recorded within Other accrued liabilities in the Consolidated Balance Sheets (Unaudited). Refer to Note 4 - Accrued Liabilities for further details.

Revolving Credit Facility

In the ~~thirty-nine~~thirteen week period ended ~~March~~September 2624, 2025, net borrowings of $90.0 million were drawn on our revolving credit facility. As of ~~March~~September 2624, 2025, $~~810~~910.0 million of credit was available under the revolving credit facility.

The $~~900~~1.0 ~~million~~billion revolving credit facility matures on ~~August~~May 181, ~~2026~~2030 and bears interest at a rate of SOFR plus an applicable margin of 1.6025% to 2.3500% and an undrawn commitment fee of 0.2520% to 0.3530%, both based on a function of our debt-to-cash-flow ratio. As of ~~March~~September 2624, 2025, our interest rate was 5.9341% consisting of SOFR of 4.3316% plus the applicable margin ~~and spread adjustment~~ of 1.6025%.

Financial Covenants

The indenture for our 8.~~250~~25% notes contains certain covenants, including, but not limited to, limitations and restrictions on the ability of the Company and its Restricted Subsidiaries (as defined in the indentures) to (i) create liens on Principal Property (as defined in the indenture) and (ii) merge, consolidate or amalgamate with or into any other person or sell, transfer, assign, lease, convey or otherwise dispose of all or substantially all of their property. These covenants are subject to a number of important conditions, qualifications, exceptions, and limitations.

Our debt agreements contain various financial covenants that, among other things, require the maintenance of certain leverage ratios. As of ~~March~~September 2624, 2025, we were in compliance with our covenants pursuant to the $~~900~~1.0 ~~million~~billion revolving credit facility and under the terms of the indentures governing our 8.~~250~~25% notes.

7. COMMITMENTS AND CONTINGENCIES

Lease Commitments and Guarantees

We have, in certain cases, divested brands or sold restaurants to franchisees and have not been released from lease guarantees for the related restaurants. As of ~~March~~September 2624, 2025 and June 2625, ~~2024~~2025, we have outstanding lease guarantees or are secondarily liable for an estimated $1311.03 million and $1511.79 million, respectively. These amounts represent the maximum known potential liability of rent payments under the leases, but outstanding rent payments can exist outside of our knowledge as a result of the landlord and tenant relationship being between two third parties. These leases have been assigned to the buyers and expire at the end of the respective lease terms, which range from fiscal ~~2025~~2026 through fiscal 2035. In the event of default under a lease by an owner of a divested brand, the indemnity and default clauses in our agreements with such third parties and applicable laws govern our ability to pursue and recover amounts we may pay on behalf of such parties. We have received notices of default and have

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the indemnity and default clauses in our agreements with such third parties and applicable laws govern our ability to pursue and recover amounts we may pay on behalf of such parties. We have received notices of default and have been named a party in lawsuits pertaining to some of these leases in circumstances where the current lessee did not pay its rent obligations and management is closely monitoring any exposure. In the thirty-nine week period ended March 26, 2025 we recorded a $1.5 million charge in Other (gains) and charges in the Consolidated Statements of Comprehensive Income (Unaudited) for lease contingencies.

Letters of Credit

We provide letters of credit to various insurers to collateralize obligations for outstanding claims. As of ~~March~~September 2624, 2025, we had $534.81 million in undrawn standby letters of credit outstanding. All standby letters of credit are renewable within the next 711 months.

Cyber Security Litigation

In fiscal 2018, we discovered malware at certain Chili’s restaurants that may have resulted in unauthorized access or acquisition of customer payment card data. ~~We settled all claims from payment card companies related to this incident and do not expect material claims from payment card companies in the future.~~ In connection with this event, the Company was also named as a defendant in a putative class action lawsuit in the United States District Court for the Middle District of Florida ~~(the “Litigation”)~~ relating to this incident. In the Litigation, plaintiffs assert various claims at the Company’s Chili’s restaurants involving customer payment card information and seek monetary damages in excess of $5.0 million, injunctive and declaratory relief, and attorney’s fees and costs.

On ~~April~~September 179, 2025, the ~~district~~plaintiff ~~court~~filed ~~heard~~a ~~oral~~notice ~~argument on the issue~~ of ~~class~~voluntary ~~certification.~~dismissal ~~Upon conclusion~~ of ~~the~~all ~~hearing,~~her ~~the~~individual ~~court~~claims ~~indicated~~without ~~it would take the matter under advisement~~prejudice. The ~~parties await the~~ court’s ~~ruling.~~subsequently Weentered ~~believe~~its weorder ~~have~~of ~~defenses~~dismissal ~~and~~on ~~intend~~September ~~to continue defending the Litigation. As such~~25, ~~as of March 26,~~ 2025, weand ~~have~~the ~~concluded that a loss, or range of loss, from this~~ matter is ~~not~~now ~~determinable, therefore, we have not recorded a liability related to the Litigation~~closed. ~~We will continue to evaluate this matter based on new information as it becomes available.~~

Legal Proceedings

Evaluating contingencies related to litigation is a process involving judgment on the potential outcome of future events, and the ultimate resolution of litigated claims may differ from our current analysis. Accordingly, we review the adequacy of accruals and disclosures pertaining to litigated matters each quarter in consultation with legal counsel and we assess the probability and range of possible losses associated with contingencies for potential accrual in the Consolidated Financial Statements (Unaudited).

We are engaged in various legal proceedings and have certain unresolved claims pending. Liabilities have been established based on our best estimates of our potential liability in certain of these matters. Based upon consultation with legal counsel, management is of the opinion that there are no matters pending or threatened which are expected to have a material adverse effect, individually or in the aggregate, on the consolidated financial condition or results of operations.

8. INCOME TAXES

Thirty-Nine Week Periods Ended

Thirteen Week Periods Ended

March 26,2025

March 27,2024

September 24,2025

September 25,2024

Effective income tax rate

157.85

89.30

The federal statutory tax rate was 21.0% for the ~~thirty-nine~~thirteen week periods ended ~~March~~September 2624, 2025 and ~~March~~September 2725, 2024.

The change in the effective income tax rate in the ~~thirty-nine~~thirteen week period ended ~~March~~September 2624, 2025 to the ~~thirty-nine~~thirteen week period ended ~~March~~September 2725, 2024 is primarily due to ~~higher~~excess ~~Income~~tax ~~before~~benefits ~~income~~from ~~taxes~~stock ~~and~~based ~~the~~compensation ~~resulting~~of ~~deleverage~~$11.7 ofmillion ~~the~~in ~~FICA~~fiscal ~~tip~~2026, ~~tax~~which ~~credit~~were significantly higher in the current year.

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9. SHAREHOLDERS’ EQUITY

Share Repurchases

Our Board of Directors approved a $~~300~~400.0 million increase in our share repurchase program ~~during~~in ~~fiscal~~August ~~2022~~2025 allowing for a total available authority of $507.0 million. Our share repurchase program is used to return capital to shareholders and to minimize the dilution to our shares outstanding that results from equity compensation grants. We evaluate potential share repurchases under our plan based on several factors, including our cash position, share price, operational liquidity, proceeds from divestitures, borrowings and planned investment and financing needs. ~~Repurchased shares are reflected as an increase in Treasury stock within Shareholder’s equity in the Consolidated Balance Sheets (Unaudited).~~

In the thirty-nine week period ended March 26, 2025, we repurchased 1.2 million shares of our common stock for $86.3 million, including 1.0 million shares purchased for $76.0 million as part of our share repurchase program and 0.2 million shares purchased from team members to satisfy tax withholding obligations on the vesting of restricted shares. These withheld shares of common stock are not considered common stock repurchases under our authorized common stock repurchase plan. As of March 26, 2025, approximately $107.0 million of share repurchase authorization remains under the current share repurchase program.13

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Footnote Index

Repurchased shares are reflected as an increase in Treasury stock within Shareholder’s equity in the Consolidated Balance Sheets (Unaudited).

In the thirteen week period ended September 24, 2025, we repurchased 0.9 million shares of our common stock for $134.5 million, including 0.6 million shares purchased for $92.0 million as part of our share repurchase program and 0.3 million shares purchased from team members to satisfy tax withholding obligations on the vesting of restricted shares. These withheld shares of common stock are not considered common stock repurchases under our authorized common stock repurchase plan. As of September 24, 2025, approximately $415.0 million of share repurchase authorization remains under the current share repurchase program.

Stock-based Compensation

In November 2024, our stockholders approved the Brinker International, Inc. 2024 Stock Option and Incentive Plan (the “2024 Plan”) for employees and authorized approximately 3.5 million shares for issuance under the 2024 Plan. The 2024 Plan replaced our stockholder-approved 1998 Stock Option and Incentive Plan (as amended, the “1998 Plan”) for employees, and no further awards will be granted under the 1998 Plan. Our 1999 Stock Option and Incentive Plan for Non-Employee Directors and Consultants (the “1999 Plan”) remains in effect.

In November 2024, the Board of Directors approved the 2025 Executive Performance Share Retention Plan and the granting of performance-based restricted share awards to Kevin Hochman, our CEO and President of the Company and President of Chili’s Grill & Bar, and certain other executives of the Company at a total grant date fair value of $25.0 million. Shares earned range from 0% to 200% of the target number of performance shares granted based on the Company’s total shareholder return (“TSR”) over a five-year period from September 26, 2024 through September 25, 2029, relative to the TSR of a peer group of companies as defined. There is a cap on the dollar value of performance shares that may be earned based on a multiple of the target number of performance shares and the Company’s stock price on the grant date. Additionally, vesting is generally contingent upon continuous service during the performance period. Compensation expense for these performance shares is recorded to General and administrative expenses on a straight-line basis over the vesting period based on the fair value of the shares as determined by Monte Carlo simulation on the date of grant.

The following table presents restricted share awards granted under the Company’s various equity compensation plans and the related weighted average fair value per share amounts.

	Thirty-Nine Week Periods Ended
	Thirteen Week Periods Ended
	March 26,2025		March 27,2024
	September 24,2025		September 25,2024
Restricted share awards
Restricted share awards granted	0.62		0.63
Weighted average fair value per share	$	86157.4731	$	3371.6096

10. NET INCOME PER SHARE

Basic net income per share is computed by dividing Net income by the Basic weighted average shares outstanding for the reporting period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of Diluted net income per share, the Basic weighted average shares outstanding is increased by the dilutive effect of stock options and restricted share awards. Stock options and restricted share awards with an anti-dilutive effect are not included in the Diluted net income per share calculation. Basic weighted average shares outstanding are reconciled to Diluted weighted average shares outstanding as follows:


	Thirteen Week Periods Ended
	September 24, 2025	September 25, 2024
Basic weighted average shares outstanding	44.7	44.9
Dilutive stock options	—	0.1
Dilutive restricted shares	1.1	0.9
Total dilutive impact	1.1	1.0
Diluted weighted average shares outstanding	45.8	45.9

Awards excluded due to anti-dilutive effect	—	—

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Footnote Index

stock options and restricted share awards. Stock options and restricted share awards with an anti-dilutive effect are not included in the Diluted net income per share calculation. Basic weighted average shares outstanding are reconciled to Diluted weighted average shares outstanding as follows:

	Thirteen Week Periods Ended		Thirty-Nine Week Periods Ended
	March 26,2025	March 27,2024	March 26,2025	March 27,2024
Basic weighted average shares outstanding	44.4	44.3	44.6	44.4
Dilutive stock options	0.1	0.1	0.1	0.1
Dilutive restricted shares	1.9	0.8	1.7	0.7
Total dilutive impact	2.0	0.9	1.8	0.8
Diluted weighted average shares outstanding	46.4	45.2	46.4	45.2
Awards excluded due to anti-dilutive effect	—	0.1	—	0.6

11. OTHER GAINS AND CHARGES

Other (gains) and charges in the Consolidated Statements of Comprehensive Income (Unaudited) consist of the following:

	Thirteen Week Periods Ended				~~Thirty-Nine Week Periods Ended~~
	March 26,2025		March 27,2024		March 26,2025		March 27,2024
	September 24,2025		September 25,2024
Litigation & claims, net	$	2.5	$	2.0	$	11.1	$	5.2
Severance and other benefit charges	$	1.5	$	0.3
Enterprise system implementation costs	2.4		3.3		12.0		7.4
Litigation & claims, net	0.7		2.5
Severance and other benefit charges	2.0		0.4		2.3		0.5
Restaurant closure asset write-offs and charges	0.6		0.7
Lease contingencies	1.5		0.3		1.5		0.8
Enterprise system implementation costs	—		4.4
Restaurant closure asset write-offs and charges	0.8		4.0		2.3		4.8
Loss from natural disasters, net (of insurance recoveries)	(2.3)		—
Loss from natural disasters, net (of insurance recoveries)	—		—		0.7		(0.4)
Other	0.4		1.0
Lease modification gain, net	(0.2)		(0.1)		(1.2)		(0.2)
	$	0.9	$	8.9
Other	—		—		1.3		1.4
	$	9.0	$	9.9	$	30.0	$	19.5

•Litigation & claims, net primarily relates to legal contingencies and claims on alcohol service cases.

•Enterprise system implementation costs primarily consists of software subscription fees and certain other costs prior to implementation and support of our new cloud-based Enterprise Resource Planning (“ERP”) system after implementation.

•Severance and other benefit charges relates to changes in our management team and organizational structure.

•~~Lease~~Litigation ~~contingencies~~& ~~includes~~claims, ~~expenses~~net ~~related~~in ~~to certain lease guarantees and sublease receivables for divested brands when we have determined it is probable that~~ the current ~~lessee~~year ~~will~~relates ~~default on the lease obligation. Refer~~ to ~~Note~~legal ~~7 - Contingencies for additional information about our secondarily liable lease guarantees~~contingencies.

•Restaurant closure asset write-offs and charges includes costs associated with the closure of certain Chili’s and Maggiano’s restaurants in the current year.

•~~Loss~~Enterprise ~~from~~system ~~natural~~implementation ~~disasters,~~costs ~~net (of insurance recoveries)~~ in the ~~current~~prior year ~~consists~~primarily consist of ~~costs~~consulting ~~incurred~~fees, ~~related~~software tosubscription ~~Hurricane~~fees, ~~Helene~~ and ~~Hurricane~~contract ~~Milton~~labor associated with the enterprise system implementation.

•~~Lease~~Loss ~~modification~~from ~~gain~~natural disasters, net ~~relates~~(of toinsurance ~~the~~recoveries) ~~reduction~~relates ofto ~~lease~~proceeds ~~liabilities~~received offrom ~~certain~~fiscal ~~closed~~2021 ~~Chili’s~~Winter ~~restaurants~~Storm claim.

1612. SEGMENT INFORMATION

Our chief operating decision maker (“CODM”) is the President and Chief Executive Officer. Our CODM uses Operating income as the measure for assessing performance and allocating resources of our segments. Our operating segments are Chili’s and Maggiano’s. The Chili’s segment includes the results of our Company-owned Chili’s restaurants, which are principally located in the United States, within the full-service casual dining segment of the industry. The Chili’s segment also includes results of our Canadian Company-owned restaurants and royalties and other fees from our franchised locations in the United States, 28 other countries and two United States territories. The Maggiano’s segment includes the results of our Company-owned Maggiano’s restaurants in the United States as well as royalties and other fees from our domestic franchise business. Costs related to our restaurant support teams for the Chili’s and Maggiano’s brands, including operations, brand recruiting, finance, marketing, culinary innovation and franchise are included in the results of our operating segments. The Corporate segment includes unallocated costs such as information technology, human capital management, accounting, legal, purchasing, and restaurant development.

Company sales for each operating segment include revenues generated by the operation of Company-owned restaurants including food and beverage sales, net of discounts, Maggiano’s banquet service charge income, delivery, gift card breakage, digital entertainment revenues, merchandise income and are net of gift card discount costs from third-party gift card sales. Franchise revenues for each operating segment include royalties, franchise advertising fees, franchise and development fees, and other service fees.

Operating income includes revenues and expenses directly attributable to segment-level results of operations. Restaurant expenses primarily includes restaurant rent, repairs and maintenance, advertising, supplies, utilities, delivery fees, payment processing fees, franchise and property taxes, workers’ compensation and general liability insurance, to-go supplies, and supervision expenses.

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Footnote Index

12We do not rely on any major customers as a source of sales, and the customers and long-lived assets of our operating segments are predominantly located in the United States. ~~SEGMENT~~There ~~INFORMATION~~were no material transactions between our operating segments.

Our operating segments are Chili’s and Maggiano’s. The Chili’s segment includes the results of our Company-owned Chili’s restaurants, which are principally located in the United States, within the full-service casual dining segment of the industry. The Chili’s segment also includes results of our Canadian Company-owned restaurants and royalties and other fees from our franchised locations in the United States, 28 other countries and two United States territories. The Maggiano’s segment includes the results of our Company-owned Maggiano’s restaurants in the United States as well as royalties and other fees from our domestic franchise business. Costs related to our restaurant support teams for the Chili’s and Maggiano’s brands, including operations, finance, franchise, marketing, human resources and culinary innovation are included in the results of our operating segments. The Corporate segment includes costs related to the common and shared infrastructure, including accounting, information technology, purchasing, guest relations, legal and restaurant development.

Company sales for each segment include revenues generated by the operation of Company-owned restaurants including food and beverage sales, net of discounts, Maggiano’s banquet service charge income, gift card breakage, delivery service fee income, digital entertainment revenues, merchandise income, and are net of gift card discounts from third-party gift card sales. Franchise revenues for each operating segment include royalties, franchise advertising fees, franchise and development fees, and gift card equalization.

We do not rely on any major customers as a source of sales, and the customers and long-lived assets of our operating segments are predominantly located in the United States. There were no material transactions amongst our operating segments.

Our chief operating decision maker uses Operating income as the measure for assessing performance of our segments. Operating income includes revenues and expenses directly attributable to segment-level results of operations. Restaurant expenses during the periods presented primarily include restaurant rent, repairs and maintenance, advertising, supplies, delivery fees, utilities, payment processing fees, and workers’ compensation and general liability insurance.

The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP:

	Thirteen Week Period Ended March 26, 2025
	Thirteen Week Period Ended September 24, 2025
	Chili's		Maggiano's		Corporate		Consolidated
Company sales	$	1,~~292~~236.2	$	~~120~~99.82	$	—	$	1,~~413~~335.04
Franchise revenues	1113.95		0.23		—		1213.18
Total revenues	1,~~304~~249.17		~~121~~99.05		—		1,~~425~~349.12
Food and beverage costs	~~324~~319.57		2824.69		—		~~353~~344.16
Restaurant labor	~~413~~395.13		3935.17		—		~~452~~431.20
Restaurant expenses	~~304~~307.56		3536.82		0.62		~~340~~344.90
Depreciation and amortization	4846.97		34.52		2.37		5453.76
General and administrative	12.7		21.56		4342.19		5857.32
Other (gains) and charges	2(1.73)		01.80		51.52		9.0.9
Total operating costs and expenses	1,~~106~~080.47		~~110~~103.36		5147.50		1,~~268~~231.23
Operating income (loss)	~~197~~169.70		10(4.71)		(5147.50)		~~156~~117.9
Interest expenses	1.3		0.1		119.81		1310.25
Other income, net	—		—		(0.12)		(0.12)
Income (loss) before income taxes	$	~~196~~167.47	$	10(4.62)	$	(6355.29)	$	~~143~~107.86
Segment assets	$	2,197.1	$	291.8	$	223.1	$	2,712.0


	Thirteen Week Period Ended September 25, 2024
	Chili's		Maggiano's		Corporate		Consolidated
Company sales	$	1,018.9	$	108.4	$	—	$	1,127.3
Franchise revenues	11.5		0.2		—		11.7
Total revenues	1,030.4		108.6		—		1,139.0

Food and beverage costs	259.1		25.2		—		284.3
Restaurant labor	341.6		35.8		—		377.4
Restaurant expenses	280.6		33.0		0.3		313.9
Depreciation and amortization	40.5		3.4		2.4		46.3
General and administrative	11.8		3.0		37.0		51.8
Other (gains) and charges	2.9		0.4		5.6		8.9
Total operating costs and expenses	936.5		100.8		45.3		1,082.6
Operating income (loss)	93.9		7.8		(45.3)		56.4
Interest expenses	1.3		0.1		12.9		14.3
Other income, net	(0.1)		—		(0.1)		(0.2)
Income (loss) before income taxes	$	92.7	$	7.7	$	(58.1)	$	42.3

Segment assets	$	2,124.1	$	244.8	$	164.2	$	2,533.1

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Footnote Index

	Thirteen Week Period Ended March 27, 2024
	Chili's		Maggiano's		Corporate		Consolidated
Company sales	$	988.4	$	120.5	$	—	$	1,108.9
Franchise revenues	11.2		0.2		—		11.4
Total revenues	999.6		120.7		—		1,120.3
Food and beverage costs	249.3		28.5		—		277.8
Restaurant labor	331.3		39.3		—		370.6
Restaurant expenses	268.7		34.6		0.1		303.4
Depreciation and amortization	36.6		3.4		2.6		42.6
General and administrative	10.8		2.4		32.9		46.1
Other (gains) and charges	5.7		0.2		4.0		9.9
Total operating costs and expenses	902.4		108.4		39.6		1,050.4
Operating income (loss)	97.2		12.3		(39.6)		69.9
Interest expenses	0.8		0.1		15.3		16.2
Other income, net	—		—		(0.2)		(0.2)
Income (loss) before income taxes	$	96.4	$	12.2	$	(54.7)	$	53.9

	Thirty-Nine Week Period Ended March 26, 2025
	Chili’s		Maggiano's		Corporate		Consolidated
Company sales	$	3,508.0	$	378.4	$	—	$	3,886.4
Franchise revenues	35.3		0.6		—		35.9
Total revenues	3,543.3		379.0		—		3,922.3
Food and beverage costs	893.7		87.6		—		981.3
Restaurant labor	1,133.1		117.5		—		1,250.6
Restaurant expenses	870.1		107.8		1.3		979.2
Depreciation and amortization	131.2		10.3		7.2		148.7
General and administrative	36.7		7.9		118.6		163.2
Other (gains) and charges	11.8		1.2		17.0		30.0
Total operating costs and expenses	3,076.6		332.3		144.1		3,553.0
Operating income (loss)	466.7		46.7		(144.1)		369.3
Interest expenses	4.2		0.2		37.8		42.2
Other income, net	(0.1)		—		(0.6)		(0.7)
Income (loss) before income taxes	$	462.6	$	46.5	$	(181.3)	$	327.8

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Footnote Index

	Thirty-Nine Week Period Ended March 27, 2024
	Chili’s		Maggiano's		Corporate		Consolidated
Company sales	$	2,803.1	$	371.5	$	—	$	3,174.6
Franchise revenues	31.8		0.5		—		32.3
Total revenues	2,834.9		372.0		—		3,206.9
Food and beverage costs	721.6		88.1		—		809.7
Restaurant labor	955.3		119.5		—		1,074.8
Restaurant expenses	785.5		103.0		0.4		888.9
Depreciation and amortization	108.3		9.8		7.7		125.8
General and administrative	31.0		6.9		93.8		131.7
Other (gains) and charges	10.3		0.6		8.6		19.5
Total operating costs and expenses	2,612.0		327.9		110.5		3,050.4
Operating income (loss)	222.9		44.1		(110.5)		156.5
Interest expenses	2.5		0.2		47.2		49.9
Other income, net	(0.1)		—		(0.2)		(0.3)
Income (loss) before income taxes	$	220.5	$	43.9	$	(157.5)	$	106.9

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help you understand our Company, our operations and our current operating environment. For an understanding of the significant factors that influenced our performance during the thirteen ~~and thirty-nine~~ week periods ended ~~March~~September 2624, 2025 and ~~March~~September 2725, 2024,. ~~the~~The MD&A should be read in conjunction with the Consolidated Financial Statements (Unaudited) and related Notes to Consolidated Financial Statements (Unaudited) included in this quarterly report. All amounts within the MD&A are presented in millions unless otherwise specified.

Overview

We own, develop, operate and franchise the Chili’s® Grill & Bar (“Chili’s”) and Maggiano’s Little Italy® (“Maggiano’s”) restaurant brands. As of ~~March~~September 2624, 2025, we owned, operated or franchised 1,~~626~~630 restaurants, consisting of 1,~~163~~161 Company-owned restaurants and ~~463~~469 franchised restaurants, located in the United States, 28 other countries and two United States territories. Our ~~restaurant~~operating ~~brands,~~segments are Chili’s and Maggiano’s~~, are both operating segments and reporting units~~.

Operating Environment

~~During recent years, our operating results were impacted by geopolitical and other macroeconomic events, leading to higher than usual inflation on wages and food and beverage costs.~~ Geopolitical and other macroeconomic events have led, and in the future may lead to, wage inflation, staffing challenges, product cost inflation (inclusive of tariffs) and/or disruptions in the supply chain that impact our restaurants’ ability to obtain the products needed to support their operation. Such events could also negatively affect consumer spending potentially reducing guest traffic and/or reducing the average amount guests spend in our restaurants.

Operations Strategy

We are committed to strategies and a Company culture that we believe will grow sales, increase profits, bring back guests and engage team members. Our strategies and culture are intended to strengthen our position in casual dining and grow our core business over time. Our primary brand strategy is to make our guests feel special through great food and quality service so that they return to our restaurants.

19Chili’s - Our strategy is to make everyone feel special through a fun atmosphere, delicious food and drinks and Chilihead hospitality. We are making work at Chili’s easier, more fun and more rewarding for our team members so that they are more engaged and provide a better experience for our guests. One way we have done this is by eliminating tasks that were unnecessary and did not add value to our guests. We have also simplified our menu to focus on core equities we believe can help grow sales—burgers, fajitas, Chicken Crispers®, margaritas, and the Triple Dipper®. Our team members can make our core menu items better and more consistently because we have fewer menu items that need to be perfected.

We have a flexible platform of value offerings at both lunch and dinner that we believe is compelling to our guests. Our “3 for Me”® platform allows guests to enjoy a non-alcoholic drink, an appetizer and certain entrées starting at just $10.99. We believe our value offerings will continue to be an important traffic driver in the current economic circumstances and we will continue to highlight this value in our marketing efforts. We have increased menu pricing in other areas in light of the inflationary challenges and we have also improved menu offerings and merchandising to incentivize our guests to purchase higher priced items.

In addition, Chili’s has focused on a seamless digital experience as our guests’ preferences and expectations around dining convenience have evolved in recent years. Investments in our technology and off-premise options have enabled us to provide a faster, more convenient dine-in experience and to offer more To-Go and delivery options for our guests. Our To-Go menu is available through the Chili’s mobile app, chilis.com, our delivery partners DoorDash, Uber Eats and Grubhub, Google Food Ordering or by calling the restaurant directly.

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~~Chili’s~~In -dining ~~Our~~rooms, ~~strategy~~we isuse totabletop ~~make~~devices ~~everyone~~with ~~feel~~functionality ~~special~~for ~~through~~guests ato ~~fun~~pay ~~atmosphere~~at the table, ~~delicious~~provide ~~food~~guest feedback and ~~drinks~~interact ~~and~~with our My Chili’s ~~hospitality~~rewards program. WeOur ~~are~~My ~~making work at~~ Chili’s ~~easier,~~rewards ~~more~~program ~~fun~~offers free chips and ~~more~~salsa ~~rewarding~~or ~~for~~a ~~our~~non-alcoholic ~~team~~beverage to members soany ~~that~~time they ~~are~~visit ~~more~~our ~~engaged~~restaurants and ~~provide~~allows aus ~~better~~to ~~experience~~communicate ~~for our guests. One way we have done this is by eliminating tasks that were unnecessary~~ and ~~did~~advertise ~~not add value~~ to our guests. Wethrough ~~have~~email ~~also~~and ~~simplified~~text. ~~our~~Our ~~menu~~servers touse ~~focus~~handheld ontablets ~~core~~to ~~equities~~place weorders ~~believe~~for ~~can~~our ~~help grow sales—burgers~~guests, ~~fajitas,~~increasing ~~Chicken~~the ~~Crispers®,~~efficiency ~~and~~of ~~margaritas,~~our ~~as well as other classic favorites. Our~~ team members ~~can make our core menu items better~~ and ~~more~~allowing ~~consistently~~orders ~~because~~to wereach ~~have~~our ~~fewer~~kitchen ~~menu~~quicker ~~items~~for ~~that~~better ~~need~~service to beour ~~perfected~~guests.

We have a flexible platform of value offerings at both lunch and dinner that we believe is compelling to our guests. Our “3 for Me” platform allows guests to enjoy a non-alcoholic drink, an appetizer and certain entrées starting at just $10.99. We believe our value offerings will continue to be an important traffic driver in the current economic circumstances and we will continue to highlight this value in our marketing efforts. We have increased menu pricing in other areas in light of the inflationary challenges and we have also improved menu offerings and merchandising to incentivize our guests to purchase higher priced items.

In dining rooms, we use tabletop devices with functionality for guests to pay at the table, provide guest feedback and interact with our My Chili’s Rewards® program. Our My Chili’s Rewards loyalty program offers free chips and salsa or a non-alcoholic beverage to members based on their visit frequency and allows us to communicate and advertise to our guests through email and text. Our servers use handheld tablets to place orders for our guests, increasing the efficiency of our team members and allowing orders to reach our kitchen quicker for better service to our guests.

Maggiano’s - At Maggiano’s, we are focused on making our guests feel special. This warm and generous hospitality creates an environment where guests come together to celebrate birthdays, weddings and many more special occasions. While our dining rooms support the majority of our business, we also offer carry-out and delivery options through partnerships with delivery service providers that have made our restaurants more accessible to guests. Our restaurants also have banquet rooms, a profitable revenue channel, to host large special events, particularly during the holiday season in the second and third quarters of the fiscal year.

Franchise Partnerships - During the ~~thirty-nine~~thirteen week period ended ~~March~~September 2624, 2025, there were 275 new franchise restaurant openings and ~~two~~one new development ~~agreements~~agreement. We plan to strategically pursue expansion of Chili’s internationally through development agreements with new and existing franchise partners.

20Company Development - The following table details the number of restaurant openings during the thirteen week periods ended September 24, 2025 and September 25, 2024, respectively, total full year projected openings in fiscal 2026 and the total restaurants open at each period end:

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	Openings During the		Full Year Projected Openings
	Thirteen Week Periods Ended			Total Open Restaurants at
	September 24, 2025	September 25, 2024		Fiscal 2026	September 24, 2025	September 25, 2024
Company-owned restaurants
Chili’s domestic	2	1		6	1,109	1,116
Chili’s international	—	—		—	4	4
Maggiano’s domestic	—	—		—	48	50
Total Company-owned	2	1		6	1,161	1,170
Franchise restaurants
Chili’s domestic	—	2		2-4	99	99
Chili’s international	5	12		24-28	367	354
Maggiano’s domestic	—	—		—	3	2
Total franchise	5	14		26-32	469	455
Total restaurants
Chili’s domestic	2	3		8-10	1,208	1,215
Chili’s international	5	12		24-28	371	358
Maggiano’s domestic	—	—		—	51	52
Total	7	15		32-38	1,630	1,625

~~Company~~Additionally, ~~Development~~the -Company ~~The~~is ~~following~~relocating ~~table~~one ~~details~~Maggiano’s ~~the number of~~ restaurant ~~openings~~with ~~during~~an ~~the~~expected ~~thirteen~~opening ~~and thirty-nine week periods ended March 26, 2025 and March 27, 2024, respectively, total full year projected openings~~ in ~~fiscal 2025 and~~ the ~~total~~current ~~restaurants open at each period end:~~year.

	Openings During the		Openings During the		Full Year Projected Openings
	Thirteen Week Periods Ended		Thirty-Nine Week Periods Ended			Total Open Restaurants at
	March 26, 2025	March 27, 2024	March 26, 2025	March 27, 2024	Fiscal 2025	March 26, 2025	March 27, 2024
Company-owned restaurants
Chili’s domestic	1	2	2	7	5	1,109	1,122
Chili’s international	—	—	—	—	—	4	4
Maggiano’s domestic	—	—	—	—	—	50	50
Total Company-owned	1	2	2	7	5	1,163	1,176
Franchise restaurants
Chili’s domestic	—	—	2	—	2-3	99	99
Chili’s international	6	2	24	16	27-29	361	341
Maggiano’s domestic	—	—	1	—	1	3	2
Total franchise	6	2	27	16	30-33	463	442
Total restaurants
Chili’s domestic	1	2	4	7	7-8	1,208	1,221
Chili’s international	6	2	24	16	27-29	365	345
Maggiano’s domestic	—	—	1	—	1	53	52
Total	7	4	29	23	35-38	1,626	1,618

As of September 24, 2025, we own property for 54 of the 1,161 Company-owned restaurants and one closed restaurant. The net book values associated with these restaurants included land of $44.8 million and buildings of $18.6 million.

During the third quarter of fiscal 2025, the Company acquired land and building valued at $3.1 million and $8.0 million, respectively, associated with four Company-owned restaurants that were previously leased. As of March 26, 2025, we own property for 54 of the 1,163 Company-owned restaurants and one closed restaurant. The net book values associated with these restaurants included land of $44.8 million and buildings of $19.0 million.

Revenues

Thirteen ~~and Thirty-Nine~~ Week ~~Periods~~Period Ended September ~~March 26~~24, 2025 compared to ~~March~~September 2725, 2024

Revenues are presented in two separate captions in the Consolidated Statements of Comprehensive Income (Unaudited) to provide more clarity around Company-owned restaurant revenues and operating expenses trends:

•Company sales include revenues generated by the operation of Company-owned restaurants including food and beverage sales, net of discounts, Maggiano’s banquet service charge income, gift card breakage, delivery service fee income, digital entertainment revenues, merchandise income, and are net of gift card discounts from third-party gift card sales.18

•Franchise revenues include royalties, franchise advertising fees, franchise and development fees, and gift card equalization.

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•Company sales include revenues generated by the operation of Company-owned restaurants including food and beverage sales, net of discounts, Maggiano’s banquet service charge income, delivery, gift card breakage, digital entertainment revenues, merchandise income and are net of gift card discount costs from third-party gift card sales.

•Franchise revenues include royalties, franchise advertising fees, franchise and development fees, and other service fees.

The following is a summary of the change in Total revenues:

	Total Revenues
	Chili’s		Maggiano’s		Total Revenues
Thirteen Week Period Ended March 27, 2024	$	999.6	$	120.7	$	1,120.3
Thirteen Week Period Ended September 25, 2024	$	1,030.4	$	108.6	$	1,139.0
Change from:
Comparable restaurant sales	~~304~~214.52		0(6.43)		~~304~~207.9
Restaurant openings	86.19		—		86.19
Digital entertainment revenues	0.82		—		0.82
Delivery service fee income	0.42		—		0.42
Gift card discounts	(0.21)		—		(0.21)
Gift card breakage	(0.9)		(0.1)		(1.0)
Maggiano's banquet income	—		(1.0)		(1.0)
Restaurant closures	(84.91)		—(1.9)		(86.90)
Company sales	~~303~~217.83		0(9.32)		~~304~~208.1
Franchise revenues(1)	02.70		—0.1		02.71
Thirteen Week Period Ended March 26, 2025	$	1,304.1	$	121.0	$	1,425.1
Thirteen Week Period Ended September 24, 2025	$	1,249.7	$	99.5	$	1,349.2

	Total Revenues
	Chili’s		Maggiano’s		Total Revenues
Thirty-Nine Week Period Ended March 27, 2024	$	2,834.9	$	372.0	$	3,206.9
Change from:
Comparable restaurant sales	708.6		7.3		715.9
Restaurant openings	26.8		—		26.8
Digital entertainment revenues	1.7		—		1.7
Delivery service fee income	0.8		0.1		0.9
Merchandise income	0.1		—		0.1
Gift card breakage	(2.2)		(0.2)		(2.4)
Maggiano's banquet income	—		(0.3)		(0.3)
Restaurant closures	(30.9)		—		(30.9)
Company sales	704.9		6.9		711.8
Franchise revenues(1)	3.5		0.1		3.6
Thirty-Nine Week Period Ended March 26, 2025	$	3,543.3	$	379.0	$	3,922.3

(1)Franchise revenues increased in the thirteen week period ended September 24, 2025 compared to September 25, 2024 primarily because of higher royalties. Our Chili’s and Maggiano’s franchisees generated sales of approximately $269.5 million and $4.6 million respectively for the thirteen week period ended September 24, 2025 compared to $225.7 million and $3.2 million respectively for the thirteen week period ended September 25, 2024.

~~(1)Franchise~~The ~~revenues~~table ~~increased~~below inpresents the ~~thirteen~~percentage ~~and~~change ~~thirty-nine~~in ~~week~~comparable ~~periods~~restaurant ~~ended March 26, 2025 compared to March 27, 2024 primarily because of higher royalties. Our Chili’s and Maggiano’s franchisees generated~~ sales ~~of approximately $237.4 million~~ and ~~$5.0 million~~restaurant ~~and~~capacity ~~$700.1 million and $12.2 million respectively~~ for the thirteen ~~and thirty-nine~~ week ~~periods~~period ended ~~March~~September 2624, 2025 compared to ~~$216.2~~September ~~million and $2.9 million and $644.3 million and $8.5 million respectively in sales for the thirteen and thirty-nine week periods ended March 27~~25, 2024. :


	Percentage Change in the Thirteen Week Period Ended September 24, 2025 versus September 25, 2024
	Comparable Restaurant Sales(1)		Price Impact		Mix-Shift Impact(2)		Traffic Impact		Restaurant Capacity(3)
Company-owned	18.8	%	4.1	%	4.1	%	10.6	%	(0.7)	%
Chili’s	21.4	%	4.0	%	4.3	%	13.1	%	(0.6)	%
Maggiano’s	(6.4)	%	5.9	%	0.5	%	(12.8)	%	(2.0)	%
Franchise(4)	19.0	%
U.S.	23.1	%
International	16.5	%
Chili’s domestic(5)	21.6	%

System-wide(6)	18.9	%

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The table below presents the percentage change in comparable restaurant sales and restaurant capacity for the thirteen and thirty-nine week periods ended March 26, 2025 compared to March 27, 2024:

	Percentage Change in the Thirteen Week Period Ended March 26, 2025 versus March 27, 2024
	Comparable Restaurant Sales(1)		Price Impact		Mix-Shift Impact(2)		Traffic Impact		Restaurant Capacity(3)
Company-owned	28.2	%	4.6	%	5.9	%	17.7	%	(1.3)	%
Chili’s	31.6	%	4.4	%	6.3	%	20.9	%	(1.4)	%
Maggiano’s	0.4	%	7.3	%	1.3	%	(8.2)	%	—	%
Franchise(4)	12.8	%
U.S.	24.1	%
International	5.8	%
Chili’s domestic(5)	31.1	%
System-wide(6)	25.9	%

	Percentage Change in the Thirty-Nine Week Period Ended March 26, 2025 versus March 27, 2024
	Comparable Restaurant Sales(1)		Price Impact		Mix-Shift Impact(2)		Traffic Impact		Restaurant Capacity(3)
Company-owned	23.2	%	5.5	%	4.4	%	13.3	%	(1.2)	%
Chili’s	25.9	%	5.3	%	4.7	%	15.9	%	(1.3)	%
Maggiano’s	2.0	%	8.0	%	1.1	%	(7.1)	%	—	%
Franchise(4)	10.1	%
U.S.	17.2	%
International	5.8	%
Chili’s domestic(5)	25.4	%
System-wide(6)	21.1	%

(1)Comparable Restaurant Sales include all restaurants that have been in operation for more than 18 full months. Restaurants temporarily closed 14 days or more are excluded from Comparable Restaurant Sales. Percentage amounts are calculated based on the comparable periods year-over-year.

(2)Mix-Shift is calculated as the year-over-year percentage change in Company sales resulting from the change in menu items ordered by guests.

~~(3)Restaurant Capacity is measured by sales weeks and is calculated based on comparable periods year-over-year.~~19

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(3)Restaurant Capacity is measured by sales weeks and is calculated based on comparable periods year-over-year. No adjustments have been made to capacity for temporary closures.

(4)Franchise sales generated by franchisees are not included in Total revenues in the Consolidated Statements of Comprehensive Income (Unaudited); however, we generate royalty revenues and advertising fees based on franchisee revenues, where applicable. We believe presenting Franchise Comparable Restaurant Sales provides investors relevant information regarding total brand performance.

(5)Chili’s domestic Comparable Restaurant Sales percentages are derived from sales generated by Company-owned and franchise-operated Chili’s restaurants in the United States.

(6)System-wide Comparable Restaurant Sales are derived from sales generated by Chili’s and Maggiano’s Company-owned and franchise-operated restaurants.

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Costs and Expenses

Thirteen Week Period Ended ~~March~~September 2624, 2025 compared to ~~March~~September 2725, 2024

The following is a summary of the changes in Costs and Expenses:

	Thirteen Week Periods Ended								Favorable (Unfavorable) Variance
	March 26, 2025				March 27, 2024
	September 24, 2025				September 25, 2024
	Dollars		% of Company Sales		Dollars		% of Company Sales		Dollars		% of Company Sales
Food and beverage costs	$	~~353~~344.16	25.08	%	$	~~277~~284.83	25.12	%	$	(7560.3)	(0.16)	%
Restaurant labor	~~452~~431.20		32.03	%	~~370~~377.64		33.45	%	(8153.6)		1.42	%
Restaurant expenses	~~340~~344.90		2425.17	%	~~303~~313.49		27.48	%	(3730.51)		32.31	%
Depreciation and amortization	5453.76				4246.63				(127.13)
General and administrative	5857.32				4651.18				(125.24)
Other (gains) and charges	9.0.9				98.9				08.90
Interest expenses	1310.25				1614.23				3.08
Other income, net	(0.12)				(0.2)				~~(0.1)~~—

As a percentage of Company sales:

•Food and beverage costs were ~~favorable~~unfavorable 0.16%, due to 1.12% ~~from menu pricing, partially offset by 0.7%~~ of unfavorable menu item mix and 0.34% of unfavorable commodity costs primarily driven by meat and ~~poultry~~seafood, partially offset by ~~favorable~~1.0% ~~rebate~~from ~~impact~~menu pricing.

•Restaurant labor was favorable 1.42%, due to 43.94% of sales leverage ~~and 0.2% of lower other labor expenses,~~ partially offset by 21.95% of higher hourly labor driven by increased staffing levels and wage rates, 0.46% of higher manager salaries, and 0.41% of higher ~~manager~~other ~~bonus~~labor expenses.

•Restaurant expenses were favorable 32.31%, due to 43.41% of sales leverage and 0.23% of lower ~~delivery~~repairs ~~fees~~and maintenance, partially offset by 0.4% of higher ~~repairs and maintenance~~advertising, 0.43% of higher ~~advertising~~rent, 0.32% of higher workers' compensation and general liability insurance, 0.2% of higher delivery fees and to-go supplies, and 0.2% of higher ~~rent~~supervision.

~~Depreciation and amortization increased $12.1 million as follows:~~20

	Depreciation and Amortization
Thirteen Week Period Ended March 27, 2024	$	42.6
Change from:
Additions for new and existing restaurant assets	6.3
Finance leases(1)	3.8
Corporate assets	0.3
Retirements and fully depreciated restaurant assets	(3.4)
Other	5.1
Thirteen Week Period Ended March 26, 2025	$	54.7

(1)Finance lease amortization increased primarily due to new tabletop and tablet devices in our restaurants.

Table of Contents

~~General~~Depreciation and ~~administrative~~amortization ~~expenses~~ increased $127.2 3 million as follows:

	General and Administrative
	Depreciation and Amortization
Thirteen Week Period Ended March 27, 2024	$	46.1
Thirteen Week Period Ended September 25, 2024	$	46.3
Change from:
Corporate technology initiatives(1)	2.5
Additions for new and existing restaurant assets	12.7
Stock-based compensation(2)	2.5
Finance leases	0.9
Payroll expenses	2.1
Corporate assets	0.8
Professional fees	2.1
Retirements and fully depreciated restaurant assets	(7.0)
Performance-based compensation	1.4
Other	(0.1)
Defined contribution plan employer expenses and other benefits	1.1
Thirteen Week Period Ended September 24, 2025	$	53.6
Other	0.5
Thirteen Week Period Ended March 26, 2025	$	58.3

~~(1)Corporate~~General ~~technology initiatives increased primarily due to ERP system subscription costs~~ and ~~amortization~~administrative ofexpenses ~~software~~increased ~~implementation costs~~$5.4 million as follows:

(2)Stock-based compensation increased primarily due to higher overall equity compensation levels to our officers, including special performance share grants to certain officers in the second quarter of fiscal 2025..


	General and Administrative
Thirteen Week Period Ended September 25, 2024	$	51.8
Change from:
Payroll expenses	4.1
Corporate technology initiatives	2.8
Defined contribution plan employer expenses and other benefits	1.2
Stock-based compensation	0.9
Professional fees	(0.9)
Performance-based compensation	(3.5)


Other	0.8
Thirteen Week Period Ended September 24, 2025	$	57.2

Other (gains) and charges consisted of the following (for further details, refer to Note 11 - Other Gains and Charges):

	Thirteen Week Periods Ended
	March 26,2025		March 27,2024
	September 24,2025		September 25,2024
Litigation & claims, net	$	2.5	$	2.0
Severance and other benefit charges	$	1.5	$	0.3
Enterprise system implementation costs	2.4		3.3
Litigation & claims, net	0.7		2.5
Severance and other benefit charges	2.0		0.4
Restaurant closure asset write-offs and charges	0.6		0.7
Lease contingencies	1.5		0.3
Enterprise system implementation costs	—		4.4
Restaurant closure asset write-offs and charges	0.8		4.0
Loss from natural disasters, net (of insurance recoveries)	(2.3)		—
Lease modification gain, net	(0.2)		(0.1)
Other	0.4		1.0
	$	9.0.9	$	98.9

Interest expenses decreased $3.08 million primarily due to the lower average outstanding debt balances~~, partially offset by higher interest on financed leased equipment~~.

Table of Contents

Thirty-Nine Week Period Ended March 26, 2025 compared to March 27, 2024

The following is a summary of the changes in Costs and Expenses:

	Thirty-Nine Week Periods Ended								Favorable (Unfavorable) Variance
	March 26, 2025				March 27, 2024
	Dollars		% of Company Sales		Dollars		% of Company Sales		Dollars		% of Company Sales
Food and beverage costs	$	981.3	25.2	%	$	809.7	25.5	%	$	(171.6)	0.3	%
Restaurant labor	1,250.6		32.2	%	1,074.8		33.9	%	(175.8)		1.7	%
Restaurant expenses	979.2		25.2	%	888.9		28.0	%	(90.3)		2.8	%
Depreciation and amortization	148.7				125.8				(22.9)
General and administrative	163.2				131.7				(31.5)
Other (gains) and charges	30.0				19.5				(10.5)
Interest expenses	42.2				49.9				7.7
Other income, net	(0.7)				(0.3)				0.4

As a percentage of Company sales:

•Food and beverage costs were favorable 0.3%, due to 1.4% from menu pricing, partially offset by 0.7% of unfavorable menu item mix and 0.4% of unfavorable commodity costs primarily driven by poultry and produce.

•Restaurant labor was favorable 1.7%, due to 4.1% of sales leverage and 0.2% of lower other labor expenses, partially offset by 2.0% of higher hourly labor driven by increased staffing levels and wage rates, 0.4% of higher manager salaries, and 0.2% of higher manager bonus.

•Restaurant expenses were favorable 2.8%, due to 3.9% of sales leverage and 0.2% of lower delivery fees, partially offset by 0.7% of higher repairs and maintenance, 0.2% of higher advertising, 0.2% of higher workers' compensation and general liability insurance, and 0.2% of higher rent.

Depreciation and amortization increased $22.9 million as follows:

	Depreciation and Amortization
Thirty-Nine Week Period Ended March 27, 2024	$	125.8
Change from:
Additions for new and existing restaurant assets	20.1
Finance leases(1)	10.5
Corporate assets	1.8
Retirements and fully depreciated restaurant assets	(14.4)
Other	4.9
Thirty-Nine Week Period Ended March 26, 2025	$	148.7

(1)Finance lease amortization increased primarily due to new tabletop and tablet devices in our restaurants.

Table of Contents

General and administrative expenses increased $31.5 million as follows:

	General and Administrative
Thirty-Nine Week Period Ended March 27, 2024	$	131.7
Change from:
Stock-based compensation(1)	6.6
Performance-based compensation(2)	6.4
Corporate technology initiatives(3)	6.2
Payroll expenses	4.7
Professional fees	3.6
Defined contribution plan employer expenses and other benefits	2.6
Other	1.4
Thirty-Nine Week Period Ended March 26, 2025	$	163.2

(1)Stock-based compensation increased primarily due to higher overall equity compensation levels to our officers, including special performance share grants to certain officers in the second quarter of fiscal 2025.

(2)Performance-based compensation increased primarily due to higher expected annual performance compared to target in the current year.

(3)Corporate technology initiatives increased primarily due to ERP system subscription costs and amortization of software implementation costs.

Other (gains) and charges consisted of the following (for further details, refer to Note 11 - Other Gains and Charges):

	Thirty-Nine Week Periods Ended
	March 26,2025		March 27,2024
Enterprise system implementation costs	$	12.0	$	7.4
Litigation & claims, net	11.1		5.2
Severance and other benefit charges	2.3		0.5
Restaurant closure asset write-offs and charges	2.3		4.8
Lease contingencies	1.5		0.8
Loss from natural disasters, net (of insurance recoveries)	0.7		(0.4)
Lease modification gain, net	(1.2)		(0.2)
Other	1.3		1.4
	$	30.0	$	19.5

Interest expenses decreased $7.7 million primarily due to the lower average outstanding debt balances, partially offset by higher interest on financed leased equipment.

Income Taxes

Thirteen Week Periods Ended

~~Thirty-Nine Week Periods Ended~~

March 26,2025

March 27,2024

March 26,2025

March 27,2024

September 24,2025

September 25,2024

Effective income tax rate

177.25

9.60

~~15.8~~

~~8.3~~

The federal statutory tax rate was 21.0% for the thirteen ~~and thirty-nine~~ week periods ended ~~March~~September 2624, 2025 and ~~March~~September 2725, 2024.

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The change in the effective income tax rate in the thirteen ~~and thirty-nine~~ week ~~periods~~period ended ~~March~~September 2624, 2025 to the thirteen ~~and thirty-nine~~ week ~~periods~~period ended ~~March~~September 2725, 2024 is primarily due to ~~higher~~excess ~~Income~~tax ~~before~~benefits ~~income~~from ~~taxes~~stock ~~and~~based ~~the~~compensation ~~resulting~~of ~~deleverage~~$11.7 ofmillion ~~the~~in ~~FICA~~fiscal ~~tip~~2026, ~~tax~~which ~~credit~~were significantly higher in the current year.

H.R. 1., also known as the One Big Beautiful Bill Act (OBBBA), was enacted on July 4, 2025. The legislation included several provisions that impact the timing and magnitude of certain tax deductions, including restoring 100% bonus depreciation for qualifying property. We have applied the key provisions impacting our financial position for the thirteen week period ended September 24, 2025, and will continue to assess the potential impacts on our financial position, results of operations and cash flows as additional guidance from the OBBBA is issued.

Segment Results

Chili’s Segment

Thirteen Week Period Ended ~~March~~September 2624, 2025 compared to ~~March~~September 2725, 2024

	Thirteen Week Periods Ended				Favorable (Unfavorable) Variance		Variance as percentage
	March 26,2025		March 27,2024
	September 24,2025		September 25,2024
Company sales	$	1,~~292~~236.2	$	~~988~~1,018.49	$	~~303~~217.83	3021.73	%
Franchise revenues	1113.95		11.25		02.70		617.34	%
Total revenues	$	1,~~304~~249.17	$	~~999~~1,030.64	$	~~304~~219.53	3021.53	%

Chili’s Total revenues increased by 3021.53% primarily due to favorable comparable restaurant sales driven by higher traffic, favorable menu item mix, and menu pricing. Refer to “Revenues” section above for further details about Chili’s revenues changes.

The following is a summary of the changes in Chili’s operating costs and expenses:

	Thirteen Week Periods Ended								Favorable (Unfavorable) Variance
	March 26, 2025				March 27, 2024
	September 24, 2025				September 25, 2024
	Dollars		% of Company Sales		Dollars		% of Company Sales		Dollars		% of Company Sales
Food and beverage costs	$	~~324~~319.57	25.18	%	$	~~249~~259.31	25.24	%	$	(7560.26)	(0.14)	%
Restaurant labor	~~413~~395.13		32.0	%	~~331~~341.36		33.5	%	(8153.87)		1.5	%
Restaurant expenses	~~304~~307.56		2324.59	%	~~268~~280.76		27.26	%	(3527.80)		32.7	%
Depreciation and amortization	4846.97				3640.65				(126.32)
General and administrative	12.7				1011.8				(10.9)
Other (gains) and charges	2(1.73)				52.79				34.02

As a percentage of Company sales:

•Chili’s Food and beverage costs were ~~favorable~~unfavorable 0.14%, due to 1.~~1% from menu pricing, partially offset by~~ 0.8% of unfavorable menu item mix and 0.24% of unfavorable commodity costs primarily driven by meat and ~~poultry~~seafood, partially offset by ~~favorable~~1.0% ~~rebate~~from ~~impact.~~menu pricing.

•Chili’s Restaurant labor was favorable 1.5%, due to 53.59% of sales leverage ~~and 0.1% of lower other labor expenses~~, partially offset by 31.37% of higher hourly labor driven by increased staffing levels and wage rates, 0.46% of higher manager salaries, and 0.41% of higher ~~manager~~other ~~bonus~~labor expenses.

•Chili’s Restaurant expenses were favorable 32.7%, due to 43.96% of sales leverage and 0.24% of lower ~~delivery~~repairs ~~fees~~and maintenance, partially offset by 0.53% of higher ~~repairs~~advertising, ~~and~~0.3% ~~maintenance~~of higher rent, 0.43% of higher ~~advertising~~supervision, 0.42% of higher workers' compensation and general liability insurance, and 0.12% of higher ~~other~~delivery ~~restaurant~~fees ~~expenses~~and to-go supplies.

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Chili’s Depreciation and amortization increased $126.32 million as follows:

	Depreciation and Amortization
Thirteen Week Period Ended March 27, 2024	$	36.6
Thirteen Week Period Ended September 25, 2024	$	40.5
Change from:
Additions for new and existing restaurant assets	511.74
Finance leases(1)	3.8
Finance leases	0.8
Retirements and fully depreciated restaurant assets	(2.5.9)
Other	5(0.31)
Thirteen Week Period Ended March 26, 2025	$	48.9
Thirteen Week Period Ended September 24, 2025	$	46.7

~~(1)Finance~~Chili’s ~~lease~~General ~~amortization increased primarily due to new tabletop~~ and ~~tablet~~administrative ~~devices~~increased in$0.9 ~~our~~million ~~restaurants.~~as follows:

Chili’s General and administrative increased $1.9 million as follows:


	General and Administrative
Thirteen Week Period Ended September 25, 2024	$	11.8
Change from:
Defined contribution plan employer expenses and other benefits	0.5
Payroll expenses	0.4

Stock-based compensation	0.2
Performance-based compensation	(0.8)
Other	0.6
Thirteen Week Period Ended September 24, 2025	$	12.7

	General and Administrative
Thirteen Week Period Ended March 27, 2024	$	10.8
Change from:
Performance-based compensation	0.6
Defined contribution plan employer expenses and other benefits	0.5
Payroll expenses	0.4
Stock-based compensation	0.4
Thirteen Week Period Ended March 26, 2025	$	12.7

Chili’s Other (gains) and charges consisted of the following (for further details, refer to Note 11 - Other Gains and Charges):

	Thirteen Week Periods Ended
	March 26,2025		March 27,2024
	September 24,2025		September 25,2024
Litigation & claims, net	$	2.0.7	$	1.92
Restaurant closure asset write-offs and charges	0.83		4.0.7
Lease modification gain, net	(0.2)		(0.1)
Loss from natural disasters, net (of insurance recoveries)	(2.2)		—
Other	(0.1)		~~(0.~~1).0
	$	2(1.73)	$	52.79

Table of Contents

Thirty-Nine Week Period Ended March 26, 2025 compared to March 27, 2024

	Thirty-Nine Week Periods Ended				Favorable (Unfavorable) Variance		Variance as percentage
	March 26,2025		March 27,2024
Company sales	$	3,508.0	$	2,803.1	$	704.9	25.1	%
Franchise revenues	35.3		31.8		3.5		11.0	%
Total revenues	$	3,543.3	$	2,834.9	$	708.4	25.0	%

Chili’s Total revenues increased by 25.0% primarily due to favorable comparable sales driven by higher traffic, menu pricing, and favorable menu item mix. Refer to “Revenues” section above for further details about Chili’s revenues changes.

The following is a summary of the changes in Chili’s operating costs and expenses:

	Thirty-Nine Week Periods Ended								Favorable (Unfavorable) Variance
	March 26, 2025				March 27, 2024
	Dollars		% of Company Sales		Dollars		% of Company Sales		Dollars		% of Company Sales
Food and beverage costs	$	893.7	25.5	%	$	721.6	25.7	%	$	(172.1)	0.2	%
Restaurant labor	1,133.1		32.3	%	955.3		34.1	%	(177.8)		1.8	%
Restaurant expenses	870.1		24.8	%	785.5		28.0	%	(84.6)		3.2	%
Depreciation and amortization	131.2				108.3				(22.9)
General and administrative	36.7				31.0				(5.7)
Other (gains) and charges	11.8				10.3				(1.5)

As a percentage of Company sales:

•Chili’s Food and beverage costs were favorable 0.2%, due to 1.4% from menu pricing, partially offset by 0.9% of unfavorable menu item mix and 0.3% of unfavorable commodity costs primarily driven by poultry and produce.

•Chili’s Restaurant labor was favorable 1.8%, due to 4.7% of sales leverage and 0.2% of lower other labor expenses, partially offset by 2.4% of higher hourly labor driven by increased staffing levels and wage rates, 0.4% of higher manager bonus, and 0.3% of higher manager salaries.

•Chili’s Restaurant expenses were favorable 3.2%, due to 4.3% of sales leverage and 0.3% lower delivery fees, partially offset by 0.8% of higher repairs and maintenance, 0.2% of higher workers' compensation and general liability insurance, 0.2% of higher rent, and 0.2% of higher other restaurant expenses.

Chili’s Depreciation and amortization increased $22.9 million as follows:

	Depreciation and Amortization
Thirty-Nine Week Period Ended March 27, 2024	$	108.3
Change from:
Additions for new and existing restaurant assets	18.3
Finance leases(1)	10.6
Retirements and fully depreciated restaurant assets	(10.9)
Other	4.9
Thirty-Nine Week Period Ended March 26, 2025	$	131.2

(1)Finance lease amortization increased primarily due to new tabletop and tablet devices in our restaurants.

Table of Contents

Chili’s General and administrative increased $5.7 million as follows:

	General and Administrative
Thirty-Nine Week Period Ended March 27, 2024	$	31.0
Change from:
Performance-based compensation	1.8
Stock-based compensation	1.4
Defined contribution plan employer expenses and other benefits	1.4
Payroll expenses	1.0
Other	0.1
Thirty-Nine Week Period Ended March 26, 2025	$	36.7

Chili’s Other (gains) and charges consisted of the following (for further details, refer to Note 11 - Other Gains and Charges):

	Thirty-Nine Week Periods Ended
	March 26,2025		March 27,2024
Litigation & claims, net	$	8.6	$	4.9
Restaurant closure asset write-offs and charges	2.3		4.8
Loss from natural disasters, net (of insurance recoveries)	0.7		(0.4)
Lease modification gain, net	(1.2)		(0.2)
Other	1.4		1.2
	$	11.8	$	10.3

Table of Contents

Maggiano’s Segment

Thirteen Week Period Ended ~~March~~September 2624, 2025 compared to ~~March~~September 2725, 2024

	Thirteen Week Periods Ended				Favorable (Unfavorable) Variance		Variance as a percentage
	March 26,2025		March 27,2024
	September 24,2025		September 25,2024
Company sales	$	~~120~~99.82	$	~~120~~108.54	$	0(9.32)	0(8.25)	%
Franchise revenues	0.23		0.2		—0.1		—50.0	%
Total revenues	$	~~121~~99.05	$	~~120~~108.76	$	0(9.31)	0(8.24)	%

Maggiano’s Total revenues ~~increased~~decreased 08.24% primarily due to ~~favorable~~unfavorable comparable restaurant sales driven by ~~menu~~lower ~~pricing~~traffic ~~and~~partially ~~favorable~~offset by menu ~~item mix~~pricing, ~~partially~~and ~~offset~~the byunfavorable ~~lower~~impact ~~traffic~~of restaurant closures. Refer to “Revenues” section above for further details about Maggiano’s revenues changes.

~~The following is a summary of the changes in Maggiano’s operating costs and expenses:~~23

	Thirteen Week Periods Ended								Favorable (Unfavorable) Variance
	March 26, 2025				March 27, 2024
	Dollars		% of Company Sales		Dollars		% of Company Sales		Dollars		% of Company Sales
Food and beverage costs	$	28.6	23.7	%	$	28.5	23.7	%	$	(0.1)	—	%
Restaurant labor	39.1		32.4	%	39.3		32.6	%	0.2		0.2	%
Restaurant expenses	35.8		29.6	%	34.6		28.7	%	(1.2)		(0.9)	%
Depreciation and amortization	3.5				3.4				(0.1)
General and administrative	2.5				2.4				(0.1)
Other (gains) and charges	0.8				0.2				(0.6)

As a percentage of Company sales:

•Maggiano’s Food and beverage costs were flat, due to 1.2% from menu pricing, partially offset by 0.9% of unfavorable commodity costs primarily driven by poultry, dairy, and seafood and 0.3% unfavorable menu item mix.

•Maggiano’s Restaurant labor was favorable 0.2%, due to 0.3% of lower hourly labor, 0.2% of lower manager bonus, and 0.2% of lower other labor expenses, partially offset by 0.5% of higher manager salaries.

•Maggiano’s Restaurant expenses were unfavorable 0.9%, due to 0.6% of higher advertising and 0.5% of higher repairs and maintenance, partially offset by 0.1% of sales leverage and 0.1% of lower other restaurant expenses.

Table of Contents

Thirty-Nine Week Period Ended March 26, 2025 compared to March 27, 2024

	Thirty-Nine Week Periods Ended				Favorable (Unfavorable) Variance		Variance as a percentage
	March 26,2025		March 27,2024
Company sales	$	378.4	$	371.5	$	6.9	1.9	%
Franchise revenues	0.6		0.5		0.1		20.0	%
Total revenues	$	379.0	$	372.0	$	7.0	1.9	%

Maggiano’s Total revenues increased 1.9% primarily due to favorable comparable restaurant sales driven by menu pricing and favorable menu item mix, partially offset by lower traffic. Refer to “Revenues” section above for further details about Maggiano’s revenues changes.

The following is a summary of the changes in Maggiano’s operating costs and expenses:

	Thirty-Nine Week Periods Ended								Favorable (Unfavorable) Variance
	Thirteen Week Periods Ended								Favorable (Unfavorable) Variance
	March 26, 2025				March 27, 2024
	September 24, 2025				September 25, 2024
	Dollars		% of Company Sales		Dollars		% of Company Sales		Dollars		% of Company Sales
Food and beverage costs	$	8724.69	2325.21	%	$	8825.12	23.73	%	$	0.53	0(1.58)	%
Restaurant labor	~~117~~35.57		3136.10	%	~~119~~35.58		3233.20	%	2.0.1		1(3.10)	%
Restaurant expenses	~~107~~36.82		2836.5	%	~~103~~33.0		2730.74	%	(43.82)		(06.81)	%
Depreciation and amortization	104.32				93.84				(0.58)
General and administrative	71.96				63.90				(1.0)4
Other (gains) and charges	1.20				0.64				(0.6)

As a percentage of Company sales:

•Maggiano’s Food and beverage costs were ~~favorable~~unfavorable 01.58%, due to 12.43% ~~from~~unfavorable menu ~~pricing,~~item ~~partially~~mix ~~offset~~and by 0.84% of unfavorable commodity costs primarily driven by ~~dairy~~meat and ~~poultry~~seafood, ~~and~~partially offset by 0.19% offrom ~~unfavorable~~ menu ~~item mix~~pricing.

•Maggiano’s Restaurant labor was ~~favorable~~unfavorable 13.10%, due to 01.98% of ~~lower~~sales ~~hourly labor~~deleverage, 0.35% of ~~lower~~higher ~~other~~manager ~~labor expenses~~salaries, ~~and~~ 0.23% of ~~sales~~higher ~~leverage~~hourly labor, ~~partially~~and ~~offset by~~ 0.34% of higher ~~manager~~other ~~salaries~~labor expenses.

•Maggiano’s Restaurant expenses were unfavorable 06.81%, due to 02.62% of sales deleverage, 1.3% of higher advertising, 1.0% of higher delivery fees and to-go supplies, 0.4% of higher repairs and maintenance, 0.34% of higher ~~rent,~~workers' ~~partially~~compensation ~~offset~~and bygeneral liability insurance, 0.3% of ~~lower~~higher ~~other~~reimage ~~restaurant~~related ~~expenses~~asset ~~and~~retirement loss, 0.2% of ~~sales~~higher ~~leverage~~rent, and 0.3% of higher other restaurant expenses.

Table of Contents

Liquidity and Capital Resources

Cash Flows

Cash Flows from Operating Activities

Thirty-Nine Week Periods Ended

Favorable (Unfavorable) Variance

Thirteen Week Periods Ended

Favorable (Unfavorable) Variance

March 26,2025

March 27,2024

September 24,2025

September 25,2024

Net cash provided by operating activities

~~493~~120.08

~~280~~62.48

~~212~~58.60

Net cash provided by operating activities increased due to an increase in operating income partially offset by an increase in payments of ~~income~~performance-based ~~taxes~~compensation and ~~interest on~~ the ~~8.250% notes in the current year, and the~~ timing of other operational receipts and payments.

Cash Flows from Investing Activities

Thirty-Nine Week Periods Ended

Favorable (Unfavorable) Variance

Thirteen Week Periods Ended

Favorable (Unfavorable) Variance

March 26,2025

March 27,2024

September 24,2025

September 25,2024

Net cash used in investing activities

(~~185~~57.49)

(~~138~~56.05)

(471.4)

Net cash used in investing activities increased compared to the prior year primarily due to increased spend on ~~Chili~~construction of new restaurants and spend related to Maggiano’s ~~equipment~~reimages, ~~and~~partially offset by decreased spend on capital maintenance and equipment.

Table of Contents

Cash Flows from Financing Activities

Thirty-Nine Week Periods Ended

Favorable (Unfavorable) Variance

Thirteen Week Periods Ended

Favorable (Unfavorable) Variance

March 26,2025

March 27,2024

September 24,2025

September 25,2024

Net cash used in financing activities

(~~354~~48.72)

(~~142~~54.07)

~~(212~~6.7)5

Net cash used in financing activities ~~increased~~decreased primarily due to ~~increases~~an increase in net ~~repayments~~borrowings of long-term debt, ~~and~~partially offset by an increase in share repurchase activity in fiscal ~~2025~~2026 compared to fiscal ~~2024~~2025.

Debt

~~We refinanced our $350.0 million 5.000% notes, which matured in October 2024, through our existing revolving credit facility.~~ During the ~~thirty-nine~~thirteen week period ended ~~March~~September 2624, 2025, net borrowings of $90.0 million were drawn on the revolving credit facility. As of ~~March~~September 2624, 2025, $~~810~~910.0 million of credit was available under the revolving credit facility.

Our $~~900~~1.0 ~~million~~billion revolving credit facility, as amended, matures on ~~August~~May 181, ~~2026~~2030 and bears interest at a rate of SOFR plus an applicable margin of 1.6025% to 2.3500% and an undrawn commitment fee of 0.2520% to 0.3530%, both based on a function of our debt-to-cash-flow ratio. As of ~~March~~September 2624, 2025, our interest rate was 5.9341% consisting of SOFR of 4.3316% plus the applicable margin ~~and spread adjustment~~ of 1.6025%.

As of ~~March~~September 2624, 2025, we were in compliance with our covenants pursuant to the $~~900~~1.0 ~~million~~billion revolving credit facility and under the terms of the indentures governing our 8.~~250~~25% notes. We expect to remain in compliance with our covenants during the remainder of fiscal ~~2025~~2026.

Share Repurchase Program

Our Board of Directors approved a $~~300~~400.0 million increase in our share repurchase program ~~during~~in ~~fiscal~~August ~~2022~~2025 allowing for a total available authority of $507.0 million. Our share repurchase program is used to return capital to shareholders and to minimize the dilution to our shares outstanding that results from equity compensation grants. We evaluate potential share repurchases under our plan based on several factors, including our cash position, share price, operational liquidity, proceeds from divestitures, borrowings and planned investment and financing needs. Repurchased shares are reflected as an increase in Treasury stock within Shareholder’s equity in the Consolidated Balance Sheets (Unaudited).

34In the thirteen week period ended September 24, 2025, we repurchased 0.9 million shares of our common stock for $134.5 million, including 0.6 million shares purchased for $92.0 million as part of our share repurchase program and 0.3 million shares purchased from team members to satisfy tax withholding obligations on the vesting of restricted shares. These withheld shares of common stock are not considered common stock repurchases under our authorized common stock repurchase plan. As of September 24, 2025, approximately $415.0 million of share repurchase authorization remains under the current share repurchase program.

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borrowings and planned investment and financing needs. Repurchased shares are reflected as an increase in Treasury stock within Shareholder’s equity in the Consolidated Balance Sheets (Unaudited).

Cash Flow Outlook

In light of an unpredictable macroeconomy, including commodity and labor inflation and supply chain disruption, we continue to focus on cash flow generation and maintaining a solid and flexible financial position to execute our long-term strategy of investing in our business. We continue to assess the macro environment and will adjust our overall approach to capital allocation, including share repurchases, based on market conditions and trends.

Based on the current level of operations, we believe that our current cash and cash equivalents, coupled with cash generated from operations and availability under our existing revolving credit facility will be adequate to meet our capital expenditure and working capital needs for at least the next twelve months.

Future Commitments and Contractual Obligations

In the thirteen week period ended September 24, 2025, we entered into long-term purchase obligations for various marketing programs, primarily media purchases. Payments under these contracts are $18.0 million in fiscal 2026, $21.2 million in fiscal 2027, $21.1 million in fiscal 2028, and $4.4 million in fiscal 2029.

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Critical Accounting Estimates

The preparation of the financial statements in conformity with GAAP requires us to make estimates and assumptions for the reporting periods covered by the financial statements. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ from these estimates. Our critical accounting estimates have not changed materially from those previously reported in our Annual Report on Form 10-K for the fiscal year ended June 2625, ~~2024~~2025.

Recent Accounting Pronouncements

The impact of recent accounting pronouncements can be found at Note 1 - Basis of Presentation in the Notes to Consolidated Financial Statements (Unaudited) set forth in Part I, Item 1 of this Form 10-Q report.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

The terms of our revolving credit facility require us to pay interest on outstanding borrowings at SOFR plus an applicable margin based on a function of our debt-to-cash flow ratio. As of ~~March~~September 2624, 2025, $90.0 million was outstanding under the revolving credit facility. We estimate that a hypothetical 100 basis point increase in the current interest rate on the outstanding balance of this variable rate financial instrument as of ~~March~~September 2624, 2025 would result in an additional $0.9 million of annual interest expense.

Commodity Price Risk

We purchase food and other commodities for use in our operations based on market prices established with our suppliers. While our purchasing commitments partially mitigate the risk of such fluctuations, there is no assurance that supply and demand factors such as disease, inclement weather, tariffs, or recent geopolitical unrest, will not cause the prices of the commodities used in our restaurant operations to fluctuate. The aggregate impact of these and other factors contributed to cost inflation in recent years. Additionally, if there is a time lag between increasing commodity prices and our ability to increase menu prices or if we believe a commodity price increase to be short in duration and we choose not to pass on the cost increases, our short-term financial results could be negatively affected.

ITEM 4. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Based on their evaluation of our disclosure controls and procedures (as defined in Rules 13(a)-15(e) and 15(d)-15(e) under the Securities Exchange Act of 1934), as of the end of the period covered by this report, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures are effective.

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INTERNAL CONTROL OVER FINANCIAL REPORTING

~~During~~There ~~the~~have ~~thirteen~~been ~~week~~no ~~period~~changes ~~ended~~in ~~December 25, 2024, we implemented a new ERP system, which replaced a legacy system where a significant portion of~~ our ~~transactions were originated, processed and, or recorded. We updated our~~ internal control over financial reporting, (as ~~necessary,~~defined ~~to accommodate related changes~~ in ~~our~~Rule ~~financial~~13a-15(f) ~~management~~of ~~processes.~~the ~~While~~Exchange weAct) ~~believe~~ that ~~this~~occurred ~~new~~during ~~system~~the ~~will~~thirteen ~~enhance~~week ~~our~~period ~~internal~~ended ~~control~~September ~~over~~24, ~~financial reporting~~2025, ~~there~~that ~~are~~have ~~inherent~~materially ~~risks~~affected, inor ~~implementing~~are areasonably ~~new~~likely ~~ERP~~to ~~system.~~materially ~~Accordingly~~affect, weour ~~will~~internal ~~continue~~control toover ~~evaluate~~financial ~~the design and operating effectiveness of these controls~~reporting.

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during the thirteen week period ended March 26, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

FORWARD-LOOKING STATEMENTS

Information and statements contained in this Form 10-Q, in our other filings with the Securities and Exchange Commission (“SEC”) or in our written and verbal communications that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally accompanied by words like “believes,” “anticipates,” “estimates,” “predicts,” “expects,” “plans,” “intends,” “projects,” “continues” and other similar expressions that convey uncertainty about future events or outcomes. All forward-looking statements are made only based on our current plans and expectations as of the date such statements are made, and except as required by law, we undertake no obligation to update forward-looking statements to reflect events or circumstances arising after the date such statements are made. Forward-looking statements are neither predictions nor guarantees of future events or performance and are subject to risks and uncertainties which could cause actual results to differ materially from our historical results or from those projected in forward-looking statements.

The forward-looking statements contained in this Form 10-Q report are subject to the risks and uncertainties described in Part I, Item IA “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 26, 2024, and below in Part II, Item 1A “Risk Factors” in this report on Form 10-Q, as well as the risks and uncertainties that generally apply to all businesses. We further caution that it is not possible to identify all risks and uncertainties, and you should not consider the identified factors as a complete list of all risks and uncertainties. Such risks and uncertainties include, among other things, the impact of general economic conditions, including inflation, on economic activity and on our operations; disruptions on our business including consumer demand, costs, product mix, our strategic initiatives, operations, technology and assets, and our financial performance; the impact of competition, including competitors employing our same strategies or discounting their offerings; changes in consumer preferences, including shifts in their brand preferences; consumer perception of food safety; reduced consumer discretionary spending; governmental regulations; the effectiveness of the Company's business strategy plan; loss of key management personnel; failure to hire and retain high-quality restaurant management and team members; increasing regulation surrounding wage inflation and competitive labor markets; the impact of social media, including the potential governmental ban of platforms used by the Company in its marketing initiatives; reputational damage or unfavorable publicity for our brands, which may result from actions of franchisees not within our control; reliance on technology and third party delivery providers; failure to protect the security of data of our guests and team members; product availability and supply chain disruptions; regional business and economic conditions; volatility in consumer, commodity, transportation, labor, currency and capital markets; litigation; franchisee success; technology failures; failure to protect our intellectual property; outsourcing; impairment of goodwill or assets; failure to maintain effective internal control over financial reporting; downgrades in credit ratings; changes in estimates regarding our assets; actions of activist shareholders; failure to comply with new environmental, social and governance (“ESG”) requirements; failure to achieve any goals, targets or objectives with respect to ESG matters; adverse weather conditions; terrorist acts; cybersecurity, artificial intelligence and phishing threats; health epidemics or pandemics; tax reform; inadequate insurance coverage; and limitations imposed by our credit agreements.

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are made only based on our current plans and expectations as of the date such statements are made, and except as required by law, we undertake no obligation to update forward-looking statements to reflect events or circumstances arising after the date such statements are made. Forward-looking statements are neither predictions nor guarantees of future events or performance and are subject to risks and uncertainties which could cause actual results to differ materially from our historical results or from those projected in forward-looking statements.

The forward-looking statements contained in this Form 10-Q report are subject to the risks and uncertainties described in Part I, Item IA “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 25, 2025, and below in Part II, Item 1A “Risk Factors” in this report on Form 10-Q, as well as the risks and uncertainties that generally apply to all businesses. We further caution that it is not possible to identify all risks and uncertainties, and you should not consider the identified factors as a complete list of all risks and uncertainties. Such risks and uncertainties include, among other things, the impact of general economic conditions, including inflation, on economic activity and on our operations; disruptions on our business including consumer demand, costs, product mix, our strategic initiatives, operations, technology and assets, and our financial performance; the impact of current and potential tariffs and trade barriers; the impact of competition, including competitors employing our same strategies or discounting their offerings; changes in consumer preferences, including shifts in their brand preferences; consumer perception of food safety; reduced consumer discretionary spending; governmental regulations; the effectiveness of the Company's business strategy plan; loss of key management personnel; failure to hire and retain high-quality restaurant management and team members; increasing regulation surrounding wage inflation and competitive labor markets; the impact of social media, including the potential governmental ban of platforms used by the Company in its marketing initiatives; reputational damage or unfavorable publicity for our brands, which may result from actions of franchisees not within our control; reliance on technology and third party delivery providers; failure to protect the security of data of our guests and team members; product availability and supply chain disruptions; regional business and economic conditions; volatility in consumer, commodity, transportation, labor, currency and capital markets; litigation; franchisee success; technology failures; failure to protect our intellectual property; outsourcing; impairment of goodwill or assets; failure to maintain effective internal control over financial reporting; downgrades in credit ratings; changes in estimates regarding our assets; actions of activist shareholders; our pursuit of or failure to comply with new environmental and sustainability requirements; our pursuit of or failure to achieve any goals, targets or objectives with respect to sustainability matters; adverse weather conditions; terrorist acts; cybersecurity, artificial intelligence and phishing threats; health epidemics or pandemics; tax reform; inadequate insurance coverage; and limitations imposed by our credit agreements.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Information regarding legal proceedings is incorporated by reference from Note 7 - Commitments and Contingencies in the Notes to Consolidated Financial Statements (Unaudited) set forth in Part I, Item 1 of this Form 10-Q report.

ITEM 1A. RISK FACTORS

In addition to the other information in this Form 10-Q report, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended June 2625, ~~2024~~2025, which could materially affect our business, financial condition or results of operations. It is not possible to predict or identify all risk factors. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also impair our business, financial condition or results of operations. Therefore, the risks identified are not intended to be a complete discussion of all potential risks or uncertainties.

There have been no material changes in the risk factors set forth in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 2625, ~~2024~~2025.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Our Board of Directors approved a $~~300~~400.0 million increase in our share repurchase program ~~during~~in ~~fiscal~~August ~~2022~~2025.

During the thirteen week period ended ~~March~~September 2624, 2025, we repurchased shares as follows (in millions, except per share amounts, unless otherwise noted):

	Total Number of Shares Purchased(1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Program	Approximate Dollar Value that May Yet be Purchased Under the Program
December 26, 2024 through January 29, 2025	—	$	—	—	$	107.0
June 26, 2025 through July 30, 2025	0.001	$	144.39	—	$	107.0
January 30, 2025 through February 26, 2025	0.002	166.28		—	107.0
July 31, 2025 through August 27, 2025	0.462	155.99		0.3	457.0
February 27, 2025 through March 26, 2025	0.006	143.47		—	107.0
August 28, 2025 through September 24, 2025	0.397	157.06		0.3	415.0
Total	0.~~008~~860	$	~~147~~156.5347	—0.6

(1)These amounts include shares purchased as part of our publicly announced programs and shares owned and tendered by team members to satisfy tax withholding obligations on the vesting of restricted share awards, which are not deducted from shares available to be purchased under publicly announced programs. Unless otherwise indicated, shares owned and tendered by team members to satisfy tax withholding obligations were purchased at the average of the high and low prices of the Company’s shares on the date of vesting. During the thirteen week period ended ~~March~~September 2624, 2025, 7272,~~674~~484 shares were tendered by team members at an average price of $~~147~~155.5393.

ITEM 5. OTHER INFORMATION

During the thirteen week period ended September 24, 2025, no director or officer adopted or terminated any Rule 10b5-1 ~~Trading~~trading ~~Arrangements~~arrangement or non-Rule 10b5-1 trading arrangement, as such terms are defined in Item 408 of Regulation S-K.

On March 6, 2025, Kevin D. Hochman, the Company’s President and Chief Executive Officer, adopted a trading plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended. Under the terms of the plan Mr. Hochman may sell up to 110,000 shares. The plan will terminate on the earlier of February 17, 2026, or completion of all orders relating to trades specified in the plan.28

Mr. Hochman entered into the trading plan for financial planning purposes, principally to diversify the high percentage of his family wealth concentrated in the Company’s stock. Prior to the first transaction under the plan, Mr. Hochman’s Company holdings plus unvested restricted stock units are expected to exceed 260,000 shares based on current performance and vesting schedules. Mr. Hochman will also have 327,190 unvested performance shares,

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not including any new annual grant expected to be made in August 2025. At all times after the transactions under his trading plan, Mr. Hochman is expected to far exceed the Company’s stock ownership guideline of six times his annual salary.

The Rule 10b5-1 trading arrangement described above was adopted and pre-cleared in accordance with the Company’s policies and actual sale transactions made pursuant to such trading arrangements will be disclosed publicly in future Section 16 filings with the SEC.

ITEM 6. EXHIBITS

Exhibit						Description
3.1						Certificate of Incorporation of Registrant, as amended(1)
3.2						Amended and Restated Bylaws of Registrant(2)
31(a)						Certification by Kevin D. Hochman, President and Chief Executive Officer of the Registrant and President of Chili’s Grill & Bar, pursuant to 17 CFR 240.13a – 14(a) or 17 CFR 240.15d – 14(a)*
10.1						Registrant’s Terms of Restricted Stock Unit Award for Fiscal 2026*
10.2						Registrant’s Fiscal 2026 Performance Share Plan*
31(a)						Certification by Kevin D. Hochman, President and Chief Executive Officer of the Registrant, pursuant to 17 CFR 240.13a – 14(a) or 17 CFR 240.15d – 14(a)*
31(b)						Certification by Michaela M. Ware, Executive Vice President and Chief Financial Officer of the Registrant, pursuant to 17 CFR 240.13a – 14(a) or 17 CFR 240.15d – 14(a)*
32(a)						Certification by Kevin D. Hochman, President and Chief Executive Officer of the Registrant ~~and President of Chili’s Grill & Bar~~, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
32(b)						Certification by Michaela M. Ware, Executive Vice President and Chief Financial Officer of the Registrant, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
101.INS						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH						XBRL Schema Document
101.CAL						XBRL Calculation Linkbase Document
101.DEF						XBRL Definition Linkbase Document
101.LAB						XBRL Label Linkbase Document
101.PRE						XBRL Presentation Linkbase
104						The cover page from the Registrant's Quarterly Report on Form 10-Q for the thirteen week period ended ~~March~~September 2624, 2025 is formatted in Inline XBRL.

* Filed herewith.

(1)Filed as an exhibit to Annual Report on Form 10-K for fiscal year ended June 28, 1995 and incorporated herein by reference.

(2)Filed as an exhibit to Annual Report on Form 10-K for fiscal year ended June 26, 2024 and incorporated herein by reference.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	BRINKER INTERNATIONAL, INC.,a Delaware corporation
Date: April 29, 2025	By:	/S/ KEVIN D. HOCHMAN
Date: October 29, 2025	By:	/S/ KEVIN D. HOCHMAN
		Kevin D. Hochman,
		President and Chief Executive Officer
		of Brinker International, Inc.
		of Brinker International, Inc. and President
		and President of Chili’s Grill & Bar
		of Chili’s Grill & Bar and Maggiano's Little Italy
		(Principal Executive Officer)
Date: April 29, 2025	By:	/S/ MICHAELA M. WARE
Date: October 29, 2025	By:	/S/ MICHAELA M. WARE
		Michaela M. Ware,
		Executive Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

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